Genius, Mayfield trade 14 childcare centres

Mayfair Childcare Limited (MFD) today announced the purchase of 14 more investments.

The $39.2 million outlay is with Genius Childcare, with which it also formed a five year incubator agreement – allowing it a development pipeline.

Upon settlement, the buyer will hold 36 assets – 27 in Victoria, eight in Queensland and one in South Australia.

To fund the latest purchases, MFD will collect $8m by way of an institutional placement from existing and new investors.

Another $1m will be generated via a non-underwritten purchase plan.

“For some time, Mayfield has sought to secure the right acquisition growth opportunities for the business,” a company statement said.

“The acquisition of the 14 Genius Childcare group of centres represents a significant step change in the business, both physically and economically, and when coupled with the incubator arrangements provides a strategic platform to significantly grow the business,” it added.

Shareholders will need to approve the purchase and placement at an extraordinary general meeting on December 6.

The deal comes nearly a year since a Mayfield leased complex at Tecoma, east of Melbourne, traded for $4.4m, and another, at Melton (pictured, top), transacted for $2.64m (story continues below).

Incubator partnership

As part of the incubator partnership, MFD said, Genius will identify, develop and trade-up childcare centres for sale to Mayfield on a non-exclusive basis.

“Each year, Genius and Mayfield will agree a new Childcare Development Plan for the year,” it added.

“The CDP will be a plan for the identification and development of childcare centres (including childcare centres under development) and their sale by Genius to Mayfield, including general and desired lease parameters (including in relation to the type of premises, the type of landlord, the duration of the term and further terms, the rent and increases or market reviews, the outgoings, and the guarantees or other security) and potential transfer dates for completion of a sale,” according to the group.

“The placement was well-supported by sophisticated, experienced and professional investors, and will see the introduction of several new institutional investors to the Company’s register”.

New shares will rank equally with the existing ones.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of