Zebra Early Learning (G8 Education) Hahndorf SA 2 Balhannah Road
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Sales Leasing Valuations Management Zebra Early Learning (G8 Education) Hahndorf SA 2 Balhannah Road Information Memorandum Auction 11am AEST Wednesday 9 August 2017 River Room, Crown Casino, Melbourne Table of Contents Investment Features 4 Introduction 6 Key Childcare Sector Attributes 8 Property Details 10 Lease Details 11 Tenant Profile 12 Location 14 Sale Process 16 Contact 16 Property Management 17 Disclaimer 18 GST Disclaimer 18 Appendices Appendix 1: Title & Plan Appendix 2: Lease Schedule Appendix 3: Lease Variation 2 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 3 Investment Features • Long 15 year lease to G8 Education Limited to June 2029 • G8 Education Ltd: largest ASX listed early education provider with over 480 centres nationally and a market cap of $1.7 billion • Three further 5 year options to June 2044 • Fixed 4% annual rental increases, plus ratchet provisions at market review (i.e. rent cannot reduce) ensuring guaranteed rental growth • Tenant pays all usual outgoings including management fees • Well-maintained facility licensed for 79 LDC places • Central 1,740 sqm site metres from two Primary Schools & only 100 metres from the junction with Mount Barker Rd • Hahndorf: long established and desirable Adelaide Hills location, 29km and easy commuter distance from the CBD, via the South Eastern Fwy Address 2 Balhannah Road, Hahndorf, SA Term: Fifteen (15) years from 27 June 2014 to 26 June 2029 Options: Three (3) to five (5) years from 27 June 2029 to 26 June 2044 Net Income: $170,892 pa + GST and outgoings Method of Sale For sale by Auction on Wednesday 9 August 2017 at 11am Crown Casino, Melbourne Adam Thomas 0418 998 971 [email protected] Natalie Couper 0413 856 983 [email protected] Roger Klem 0423 919 373 [email protected] Tom Bailey 0407 607 266 [email protected] 4 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 5 Introduction Burgess Rawson and JLL are delighted to offer the freehold interest in a childcare investment located at 2 Balhannah Road, Hahndorf, South Australia, and leased to G8 Education. The property will be offered for sale by way of Auction, to be held from 11.00am (AEST) on Wednesday 9 August 2017, at Crown Casino, Melbourne. Burgess Rawson Since being established in 1975, our Sales, Burgess Rawson’s iconic Portfolio Auctions are Leasing, Property Management, Valuation and held in Melbourne and Sydney bringing together Advisory services fulfil the complete and ongoing a diverse range of national commercial and needs of our clients. Burgess Rawson has a investment grade properties. network of offices throughout Australia and Based on our knowledge and experience, extensive regional partnerships with local property Burgess Rawson and JLL are confident in specialists, giving unmatched depth and reach in recommending this property as an outstanding all commercial property market sectors. childcare investment opportunity. At every stage of ownership, our clients benefit from our specialist knowledge, experience, market insights and advice. Our strong market position, plus our targeted and effective marketing campaigns through a highly qualified database, generates maximum exposure for properties. 6 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 7 Key Childcare Sector Attributes According to the Department of Education and Training report for According to IBIS World, a baby boom is coming – with the rate of the September 2015 quarter, the future looks bright for childcare births expected to increase by 6.4% over the next few years as the investments with over 1.2 million children attending some form workforce ages. of approved childcare service in Australia. This has been steadily growing and has increased by 5.7% on the previous year. The demand is being driven by a number Under the proposed federal Budget the new of industry factors including: Child Care Subsidy will replace both existing government subsidies where families earning • The high cost of living driving parents up to $65,000 will be able to receive up back to work to 85% off the cost of their childcare back Children using Long Day Care by State and Territory • The desire of more women to maintain in subsidies. This rate reduces with higher September Quarter, 2015 careers than in the past incomes, with families earning over • The government’s position that female $170,000 potentially receiving 50% back. workforce participation is good for the Nationally, total government recurrent and economy. capital expenditure on childcare services • The Australian Government subsidises 34.1% was $8.6 billion in 2014-15 (an increase the cost of child care for eligible families of 9.6% from 2013-14). Over the last five through the Child Care Benefit and the years, the average annual growth rate of Child Care Rebate to help parents with real expenditure was 10.6% which may the cost of approved child care. push up demand for childcare even further. Source: ABS and Department of Education and Training 22.6% During the September 2015 quarter, the total estimated expenditure on Child Care Benefit and Child Care Rebate was over $1.8 billion, 2.2% 64% of which was paid in relation to families 0.8% using Long Day Care services. 1.7% 8.2% 6.2% 24.4% n NSW n WA n VIC n TAS n QLD n NT n SA n ACT 8 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 9 Property Details Property Details Lessee: G8 Education Limited trading as Zebra Early Learning Centre Address 2 Balhannah Road, Hahndorf, SA Lease Term Fifteen (15) years Lease Commenced 27 June 2014 Title Details Lease Expiry 26 June 2029 Lot 103 on Deposited Plan 75253 Options Three (3) further terms of five (5) years to 26 June 2044 Site Area Outgoings All outgoings paid by the tenant including management fees 1,740 sqm Rent Reviews Fixed 4% annual increases plus ‘ratchet’ provisions at market review ensuring the rent cannot reduce Zoning Security Bank guarantee equal to three (3) months rent The land is zoned ‘Country Township’ Net Income $170,892 p.a. plus GST and Outgoings under the Mount Barker District Council Development Plan Tenant Profile Location Accommodation includes: The subject property is located 100 metres • Reception + office from the intersection of Hahndorf’s main street • Four (4) education rooms with direct access and ideally positioned neighbouring Education to external play areas facilities of St Michaels Lutheran Primary • Children’s bathrooms School and Hahndorf Primary School. • Disabled unisex WC G8 Education Limited (ASX: GEM) listed on the Australian Securities Site Description • Laundry + storage room Exchange on 5 December 2007 is the largest ASX listed early education The subject site is mostly irregular in shape and • Kitchen + staff room centre provider in Australia, with a current market capitalisation of has the following boundary dimensions: $1.7 billion. • Northern boundary 67 m* Building Construction (Balhannah Road frontage) • Footings: Reinforced concrete G8 currently owns and operates over 480 centres nationally and their premium brands include: • Western boundary 79 m* • Floors: Reinforced concrete slab • Eastern boundary 32 m* • Floor Coverings: Vinyl • Southern boundary 55 m* • External walls: Brick • Total area 1,740 sqm* • Internal lining: Painted plasterboard • Windows: Aluminum framed Building Description • Doors: Aluminium framed A single level facility with service approval • Ceilings: Painted plasterboard for 79 Long Day Care (LDC) places. • Roof: Colourbond sheeting *Approx For further details please visit: www.g8education.edu.au 10 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 11 Location Hahndorf is one of the Adelaide Hill’s most popular towns, located 28 kilometres from the Adelaide CBD. Hahndorf is Australia’s oldest surviving German settlement and is characterised by beautiful shady, tree-lined streets, cafes, bars and restaurants, making it one of South Australia’s premier tourist attractions. Mount Barker is the largest township in the Council estimated that the existing capacity of Adelaide Hills and operates as a regional service the current preschools, primary and secondary centre for the central Mount Loft Ranges schools would not be able to accommodate Region, providing a wide diversity of retail, the growth in demand that will result from commercial, institutional and business activities development in the Mount Barker growth area. and services. Mount Barker, along with the Council has since estimated there is potential townships of Littlehampton and Nairne are demand for up to five pre-schools, five primary experiencing high and sustained growth which schools and two secondary schools, based on is likely to continue for the foreseeable future. a total population of 50 000, and has identified preferred sites in the Mount Barker growth area The District currently has above average for these new schools. proportions of children and young people, and this is likely to continue as new homes are marketed toward first home buyers and Source Burgess Rawson Research, young families. In 2011, family households www.forecast.id.com.au and with dependent children made up 45.4% of all www.mountbarker.sa.gov.au District households, compared with 39.5% in Greater Adelaide. 12 Information Memorandum - 2 Balhannah Road, Hahndorf SA Burgess Rawson 13 Sale Process N Method of Sale Flinders St Yarra romenade Railway Kings St The property will be Crown owers Escalators offered for sale by Auction Yarra River Main omple ntry Atrium River Room Auction Wednesday P Queensbridge St Casino 9th August 2017 at 11am Power St Palladium Crown P Promenade River Room, Crown Food ourt Casino, Melbourne VIC Crown Conference Clarendon St Centre Casino Kings ay Melbourne Exhibition P Centre Whiteman St Multi-level ar ark Crown Cit Rd Normanb Rd Metropol Whiteman St Clarke St Haig n Inspections The property will be open for inspection at a time to be advised. Please contact the agents to register your interest and confirm inspection times.