Australian Unity Childcare Property Fund

The Fund primarily invests in a diversified portfolio of childcare properties including established properties and development assets. Exposure to childcare properties may include direct property, unlisted managed funds, property syndicates or companies that mainly hold childcare property.

The Fund may invest in property assets related to its childcare assets, for example an adjacent carpark.

The Fund may also, from time to time, provide loans, for example to childcare operators to assist them with funding the fitting out of the Fund’s childcare properties and hold liquid assets such as cash and REITs.

The Fund will target portfolio diversification across all capital cities in Australia and balanced according to risk and demographic metrics. It may take some time for the Fund to achieve its target portfolio diversification as it will depend on the availability of appropriate assets and market conditions generally.

An equity raising presentation containing more detailed information about the Fund, including asset details and financial information will be made available to investors upon request.

Features of the Fund:

• Distributions are expected to be paid quarterly and will be sourced primarily from rental income from the Fund's childcare properties.
• Managed by an investment manager with skilled employees who have extensive experience in the property industry.
• Access to a diversified portfolio of childcare properties and related assets, which will include some strategic assets with the ability to enhance income and the potential for capital growth over the medium to long-term.
• Potential for tax deferred income.

In acquiring and managing the assets of the Fund our objective is to ensure the Fund takes advantage of trends in the childcare sector, through in-depth research into demographics and supply demand fundamentals.

Our decisions to invest in childcare properties (directly or indirectly) will be based on the asset's ability to deliver attractive returns, increase the Fund’s diversification and the asset’s relative liquidity. We aim to achieve this by:

• acquiring childcare properties or assets such as managed funds, property syndicates and companies that hold childcare properties operated by the leading providers and operators in their particular geographical area;
• selectively developing suitable long-term expansion and/or improvement strategies for the properties;
• ensuring the Fund maintains adequate diversification including by geography and between established and development assets;
• building strong, secure relationships with tenants/operators that have strong established relevant experience and expertise in the childcare sector;
• where practical, putting in place carefully structured, long-term leases, with the aim of achieving stable and predictable rental income as well as growth in rental income over the long-term; and
• maintaining an exposure to REITs for liquidity management.

The Fund utilises a combination of equity provided by investors, and borrowings from lenders, to acquire childcare properties and other investments for the Fund and to fund development, refurbishment, or improvement activities in relation to its childcare properties. 

Over time the Fund will target the below asset allocation, however as the Fund acquires assets over the short term these ranges may vary:

The Fund may gain exposure to childcare properties, by holding direct property or holding an indirect interest via unlisted managed funds, property syndicates or companies that mainly hold childcare property.

Target geographic asset allocation

Over time the Fund will target the below geographic asset allocation, however as the Fund acquires assets over the short term these ranges may vary:

Withdrawals are not currently available from the Fund.

You should consider an investment in the Fund a medium to long term investment.

Any withdrawal opportunity will, subject to the Corporations Act, be at our absolute discretion.

Subject to market conditions investors we expect to offer a limited liquidity facility during the financial year ending 30 June 2025, and annually thereafter, or more or less frequently as advised by us.

Any such withdrawal opportunity would be subject to any liquidity constraints on the Fund at the time. The Fund's Constitution allows us to suspend withdrawals for up to 180 days in certain circumstances.

Funding withdrawals may involve the full or partial sale of the Fund's asset portfolio or other funding mechanisms relevant at the time. 

Refer to the Information Memorandum dated March 2022. The investment objectives that we aim to deliver to investors is a statement of intent, and we cannot guarantee that the Fund will achieve these.

Units in the Australian Unity Childcare Property Fund are issued by Australian Unity Funds Management Limited (AUFM) ABN 60 071 497 115, AFSL 234454.

AUFM is part of the Australian Unity Group of companies. The information is general information only and is not intended to be relied upon as financial product advice and does not take into account the objectives, financial situation, or needs of any particular investor. In deciding whether or not to acquire, hold or dispose of the product, investors should read the Information Memorandum and consider whether the product is appropriate to their particular circumstances and objectives.

Prior to investing in any financial product, an investor should consult with a financial and/or tax adviser.

Investment is only available to investors who are ‘wholesale clients’ for the purposes of section 761G of the Corporations Act. Past performance is not a reliable indicator of future performance.

The investment objectives that we aim to deliver to investors is a statement of intent, and we cannot guarantee that the Fund will achieve these.