PMG to invest in childcare
There is a shortage of quality early learning centres in New Zealand, especially in Auckland and Christchurch. Photo / Supplied
The Property Managers Group (PMG) Direct Childcare Fund is partnering with planners and developers to establish early learning centres nationwide.
Initially PMG will acquire or design, develop and manage the purpose-built centres — beginning with sites in Auckland and Christchurch, says Property Managers Group CEO, Scott McKenzie.
“The plan is to build childhood education centres on sites the Direct Childcare Fund has bought in Silverdale and Rolleston. They will be run by established childcare centre operators.”
Open to wholesale investors, PMG is offering up to 10 million units to be issued at $1 per unit and is targeting a strong year-one gross distribution return of 6.5 per cent pa for the full financial year to March 31, 2019. PMG is targeting a 10 per cent internal rate of return (for the full financial year to March 31, 2019).
“The sector is viewed as more stable than other asset classes, given the strength of the generally long-term leases, strong government funding and New Zealand’s relatively high childcare participation rate,” McKenzie says.
“The demand for quality childcare facilities has never been higher. The increase in the costs of living and home ownership, particularly in Auckland and Christchurch, means parents are needing to return to work sooner and sought care for their little ones.
“We know for many families providing top quality educational opportunities for their children is important but not always possible. We’re thrilled to be helping parents, grandparents and clients to invest in the education of the future generation.”
He says the Government is investing in early learning through the provision of subsidies via the early learning centres. In 2012 the Government set itself the goal of ensuring 98 per cent of all children aged between three and five-years-old attend a quality early learning centre prior to starting primary school.
“It has committed an additional $396 million in the 2016 budget to fund care for an extra 14,000 children by 2019/2020,” says McKenzie.
“There is a shortage of quality early learning centres in New Zealand, especially in Auckland and Christchurch.”
Scott McKenzie, CEO, Property Managers Group