The Lowy Family Group backed Assembly Funds Management has acquired six early learning centres in North West Sydney.
The acquisition is in partnership with Harrington Property Funds Management and will see the six childcare centres operated by Young Academics under a 15-year lease.
"The risk reward balance of this transaction in the alternative asset class is appealing to the fund at this time. Childcare has proven to be a highly resilient asset class in the face of economic turbulence and offers good value in a low-yield macroenvironment," Assembly head of transactions Tim Meurer said.
"By comparison, the direction of other asset classes such as traditional retail, commercial and leisure is less certain while industrial and logistics are heavily sought-after and comparatively expensive."
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Harrington Property Funds Management director Trevor Byles said the investment was prudent as he predicts institutional investors will increasingly be keen to snap up freehold early learning centres.
"The early learning sector is well placed for long-term growth having the benefit of bi-partisan government support. That support is driven by academic research which has highlighted the immediate and longer term social and economic benefits of childhood participation in formal early learning programs," Byles said.
"From a real estate investment perspective, we are of the view that as the sector matures, the freehold ownership of early learning centres will become more consolidated by institutional capital."