Due to the continuing extreme volatility in global
financial markets this product has been placed on hold.
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Orchard Childcare Property Fund |
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Rebate |
3.00% as additional units |
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Minimum
Investment |
$10,000 |
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Investment Term |
Open-ended |
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Research |
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Lonsec Research |
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The Fund provides exposure to
more than 200 purpose-built, fully-tenanted properties,
including 30 new centres under development. The Fund has a
broad geographic exposure across Australia, with the
portfolio of properties generally leased on long term
arrangements directly to, or guaranteed by, reputable
childcare operators.
Investment Benefits
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A
high level of income, that is largely tax sheltered,
with some capital growth potential. |
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High
weighted average lease duration, meaning long term
leases providing stability of income flows. |
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The
portfolio is geographically diverse. |
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The
Fund has a strategic alliance with the world’s
largest childcare service provider. |
Why invest in childcare
property?
The childcare industry continues to show growth
within the property industry, underpinned by the
Federal Government’s strategy to promote the well
being of Australian families. Quality and affordable
childcare is considered an essential service, and is
an industry in which demand is expected to grow
given the change in lifestyle patterns of
Australians. In parallel with this is labour force
participation. It is expected that women will
continue to increase their work commitments over the
next five years. There will also be a continued
shift away from informal childcare.
Consolidation within the industry continues with
ABC, the world’s largest listed childcare operator,
announcing the acquisition of ASX-listed Kids Campus
for $142.2 million. Kids Campus is a leading
childcare operator in Australia with 85 centres
predominately in Queensland and Victoria. |
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Download PDS (279kb) |
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Download PDS Update Apr 2007 |
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Download PDS Update Jul 2007 |
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Download PDS Update Feb 2008 |
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Download PDS Update Mar 2008 |
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These factors positively influence the overall
profitability of the industry. This in turn leads to
an increase in the economic value of those childcare
centres which are strategically located within their
respective catchments, or are able to create a
dominant position in their local markets by offering
a superior level of professional service.
As a result, we anticipate the ongoing and
increasing demand for well placed, purpose-built and
strongly branded childcare facilities, such as those
owned by the Fund, should underpin the prospects for
strong growth in the values of these centres.
Key features and benefits
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Type of investment |
The Fund is an unlisted unit trust. |
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Investment objective |
The Fund’s objective is to provide a
high level of largely tax sheltered income with
strong growth prospects over the short to medium
term. |
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Investment strategy |
The Fund aims to maintain a
geographically diverse portfolio of primarily
purpose-built childcare centre properties located in
Australia and overseas, that are subject to long
term leases either directly with, or fully
guaranteed by reputable childcare operators. |
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Gearing |
The gearing level of the Fund will
vary from time to time, however we target a long
term gearing ratio in the order of 60% to 65%. Any
borrowings will be non-recourse to Investors. |
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Market Capitalisation
(as at 31 Mar 2007) |
$221 million |
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Minimum initial investment |
$10,000 |
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Minimum additional investment |
$1,000 |
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Buy/sell spread |
Normally 5.125% |
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Fees and other costs |
There are standard fees and costs
that apply to the Fund. |
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Unit price |
The Unit Price is calculated in
accordance with the constitution of the Fund and is
based on the Fund’s net assets. |
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Distribution reinvestment |
Yes – optional. |
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Distribution frequency |
Quarterly, generally within 30 days
of the end of March, June, September and December. |
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Cooling off |
As the Fund will invest mostly in
assets that are not liquid, there will not be a
cooling off period in relation to applications. |
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Liquidity |
The Fund is not ‘liquid’ as defined
under the Corporations Act and you should regard
your investment in the Fund as being long term and
illiquid. We will endeavour to make withdrawal
offers twice each year of up to 5% of the net value
of the Fund per annum. |
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Risks |
There are risks associated with an
investment in the Fund. |
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Simply download an Investment
Brochure/PDS above. It’s that easy! |
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