Dorado snaps up childcare portfolio for new fund
The investment arm of Dorado Property will establish an early learning fund after paying $18.4 million for four Western Australian childcare centres at various stages of development.
Offered by Jarra Property with lease commitments, the blended yield is 6.1 per cent.
LJ Hooker Commercial Perth’s Jake Wallman was the agent.
Dorado was established in 2009.
Early last year the group, which both invests in property and provides first mortgage and mezzanine debt, outlaid $24.25m for a four storey office at 12 Newcastle Street, Perth, majority leased to London listed Compass Group.
Secure, consistent predictable returns: Dorado
In Perth, the childcare portfolio includes three assets close to completion:
- 19 Morlup Road, Harrisdale, to be occupied by Nido;
- 341 Park St, Brabham (YMCA) and
- 2472 Wright Road, Piara Waters (Greenleaves).
The fourth property – 45-49 Porter Road, Kalgoorlie, was completed late last year and is tenanted to the YMCA (story continues below).
“The transaction reflected an opportunity for Dorado to kick-start an early learning focused fund with scale, whilst allowing Jarra to secure an end-sale for each project before moving onto their next tranche of developments,” Mr Wallman said of the off-market deal.
More assets to come
Dorado director David Giles said the trust intends to stock up on more childcare product.
“Dorado believes the early learning sector has a number of sustainable, structural tailwinds that will continue to make it an attractive asset class to own, including strong bipartisan political support, a social drive towards workplace gender equality and higher workplace participation rates in women,” he added.
Colleague James Khng said the objective of the proposed fund is to provide secure, consistent, predictable returns.
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