March 9, 2021 - Peak Equities

Childcare in Australia – A Guide to Investment

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As part of our ongoing search for commercial real estate assets offering strong income security, resilience in the face of economic uncertainty and attractive prospects for capital growth, over the past 12 months Peak Equities has undertaken detailed research into all aspects of the childcare industry, particularly that of the Long Day Care (LDC) sector.

The Childcare industry has grown in prominence over recent years, and in particular during the Covid-19 pandemic. Based on our research, we are strongly attracted to investment in the Childcare property sector.

In the prevailing environment of historically low interest rates and a volatile equities market, childcare assets offer stable, long-term income extending through and beyond the current economic cycle. Investment in suitably qualified LDC Childcare properties benefits from long leases (typically 15-20 years), sticky tenants, very low incentives, strong underlying land value, limited capital expenditure and historically high levels of demand and government funding.

The report we have prepared is a collaborative production between the Peak Equities Group and Navigator IC, who provided the majority of the statistical and historical inputs. The document addresses issues relevant to investment in LDC Childcare properties.

In anticipation of offering syndicated childcare investment opportunities to Peak investors in 2021, we invite you to review the attached report: “Childcare in Australia – A Guide to investment” and we will be pleased to discuss in more detail and to answer any questions you may have.