Nanna’s Childcare Centre...2017/07/19 · Introduction Burgess Rawson and JLL are delighted to...

SalesLeasingValuationsManagement

Nanna’s Childcare Centre 31 Camille Street, Hallett Cove SA

Information Memorandum

Auction 11am AEST Wednesday 9 August 2017

River Room, Crown Casino, Melbourne

Table of Contents

Introduction 4

Investment Features 6

Key Childcare Sector Attributes 8

Property Details 10

Lease Details 11

Tenant Profile 11

Location 12

Sale Process 15

Contact 15

Property Management 16

Disclaimer 17

GST Disclaimer 17

Appendices

Appendix 1: Title & Plan

Appendix 2: Lease Schedule

Burgess Rawson 32 Information Memorandum - 31 Camille Street, Hallett Cove SA

Introduction

Burgess Rawson and JLL are delighted to offer the freehold interest in a childcare investment located at 31 Camille Street, Hallett Cove, South Australia, and leased to Nanna’s Childcare. The property will be offered for sale by way of Auction, to be held from 11.00am (AEST) on Wednesday 9 August 2017, at Crown Casino, Melbourne.

Burgess Rawson

Since being established in 1975, our Sales, Leasing, Property Management, Valuation and Advisory services fulfil the complete and ongoing needs of our clients. Burgess Rawson has a network of offices throughout Australia and extensive regional partnerships with local property specialists, giving unmatched depth and reach in all commercial property market sectors.

At every stage of ownership, our clients benefit from our specialist knowledge, experience, market insights and advice. Our strong market position, plus our targeted and effective marketing campaigns through a highly qualified database, generates maximum exposure for properties.

Burgess Rawson’s iconic Portfolio Auctions are held in Melbourne and Sydney bringing together a diverse range of national commercial and investment grade properties.

Based on our knowledge and experience, Burgess Rawson are confident in recommending this property as an outstanding childcare investment opportunity.


Address

31 Camille Street, Hallett Cove, SA

Term: Fifteen (15) years from 1 August 2017 to 31 July 2032

Options: Three (3) to five (5) years from 1 August 2032 to 31 July 2017

Net Income: $600,000 pa + GST and outgoings

Method of Sale

For sale by Auction on Wednesday 9 August 2017 at 11am Crown Casino, Melbourne

Investment Features

• Secure 15 year lease to Nanna’s Childcare to August 2032

• Three further 5 year options to August 2047

• Nanna’s Childcare: long established and proven provider in operation over 32 years

• Desirable 3% rent increases and to market at option

• Tenant pays all usual outgoings

• Well maintained facility licensed for 30 places

• Prominent 661sqm corner site only 650 metres from Hallett Cove Shopping Centre (Woolworths, Aldi, McDonald’s, Big W)

• Hallett Cove: established bayside suburb located 23km south from the Adelaide CBD

Natalie Couper 0413 856 983 [email protected]

Adam Thomas 0418 998 971 [email protected]

Roger Klem 0423 919 373 [email protected]

Tom Bailey 0407 607 266 [email protected]


Key Childcare Sector Attributes

According to the Department of Education and Training report for the September 2015 quarter, the future looks bright for childcare investments with over 1.2 million children attending some form of approved childcare service in Australia. This has been steadily growing and has increased by 5.7% on the previous year.

According to IBIS World, a baby boom is coming – with the rate of births expected to increase by 6.4% over the next few years as the workforce ages.

The demand is being driven by a number of industry factors including:

• The high cost of living driving parents back to work

• The desire of more women to maintain careers than in the past

• The government’s position that female workforce participation is good for the economy.

• The Australian Government subsidises the cost of child care for eligible families through the Child Care Benefit and the Child Care Rebate to help parents with the cost of approved child care.

During the September 2015 quarter, the total estimated expenditure on Child Care Benefit and Child Care Rebate was over $1.8 billion, 64% of which was paid in relation to families using Long Day Care services.

Under the proposed federal Budget the new Child Care Subsidy will replace both existing government subsidies where families earning up to $65,000 will be able to receive up to 85% off the cost of their childcare back in subsidies. This rate reduces with higher incomes, with families earning over $170,000 potentially receiving 50% back.

Nationally, total government recurrent and capital expenditure on childcare services was $8.6 billion in 2014-15 (an increase of 9.6% from 2013-14). Over the last five years, the average annual growth rate of real expenditure was 10.6% which may push up demand for childcare even further.Source: ABS and Department of Education and Training

n NSW

n VIC

n QLD

n SA

n WA

n TAS

n NT

n ACT

34.1%

22.6%

24.4% 6.2%

8.2%

1.7%0.8%2.2%

Children using Long Day Care by State and TerritorySeptember Quarter, 2015


Lease DetailsProperty Details

Lessee: Global Sky Properties Pty Ltd trading as Nana’s Childcare Centre

Lease Term Fifteen (15) years

Lease Commenced 1 August 2017

Lease Expiry 31 July 2032

Options Three (3) further terms of five (5) years to 31 July 2047

Outgoings All usual outgoings paid by the tenant

Rent Reviews Fixed 3% annual increases plus market review at options

Security Bank guarantee equal to three (3) months’ rent

Net Income $60,000 p.a. plus GST and Outgoings

LocationThe subject property is strategically located within an established bayside residential precinct and 650m from Hallet Cove Shopping Centre.

Site Description The subject site is mostly regular in shape and has the following boundary dimensions:

• Northern boundary 30 m

• Eastern boundary 23 m (Camille Street frontage)

• Southern boundary 27 m (Apollo Drive)

• Western boundary 22 m

• Total area 661 sqm

Building DescriptionA single level facility with service approval for 30 Long Day Care (LDC) places.

Car Parking 4 spaces at grade.

Accommodation includes: • Entry + foyer + office

• Three (3) education rooms with direct access to external play areas

• Children’s bathrooms

• Disabled unisex WC

• Laundry + storage room

• Kitchen + staff room

Building Construction • Floors: Concrete slab

• Floor Coverings: Combination of tile, carpet & vinyl

• External walls: Rendered & exposed brick

• Internal lining: Painted plasterboard

• Windows: Aluminum framed

• Doors: Aluminium framed

• Ceilings: Painted plasterboard

• Roof: Tile

Address 31 Camille Street, Hallett Cove SA

Title Details Lot 202 on Deposited Plan 10363

Site Area 661 sqm aprox.

Zoning The land is zoned ‘Residential Southern’ under the City of Marian Development Plan

Tenant Profile

Nanna’s Childcare Centre is a privately owned business, operating since 1985, the first child care centre in Hallett Cove. Nanna’s Childcare are fully qualified in all aspects of children’s care, in line with the latest methodology and accreditation principles. Caring and driven educators bring a vast amount of experience in the childcare industry, with continuous professional and person development plans, the team proved the best quality learning experience for each child.

Nanna’s Childcare Centre provides long-day care from weeks 6 weeks old and a licensed and accredited Kindergarten program, facilitated by a qualified early childhood teacher.

Nanna’s Childcare Centre has two established centres:

Kindy House (2-5 years old) 31 Camille Street, Hallett Cove. Baby House (0-2 ½ years old) 235 The Cove Road, Hallett Cove, 5158

For further details please visit: http://www.nannaschildcare.com.au


Location

Hallett Cove is a coastal suburb situated approximately 18 kilometres south-west of the Adelaide CBD. A residential suburb with a major commercial/retail hub at the Hallett Cove Shopping Centre. The Hallett Cove Shopping Centre is a sub-regional centre anchored by Woolworths, Big W, Foodland, ALDI and 55 specialities.

The City of Marion covers the southern suburbs of Adelaide, South Australia and is one of the state’s larger metropolitan councils covering approximately 55km sq, stretching from Glandore to the coastal suburb of Hallett Cove.

With a population of approximately 88,900 residents, the City of Marion has modern transit-oriented development, together with the upgrade of South Road and the electrification of rail lines contribute to a sustainable future for Marion. The southern communities of Hallett Cove and Sheidow Park continue to experience significant growth including a new shopping centre

redevelopment and connector road supported by the council as part of its South Plan. The Housing Trust redevelopment at Mitchell Park and future affordable housing initiatives will also support increased community wellbeing.

The City of Marion is a place characterised by diversity and change. Seven kilometres of rugged and beautiful coastline, hundreds of hectares of open space and bushland lie side by side with modern suburban development.

For further information, please visit: www.marion.sa.gov.au


Sale Process

InspectionsThe property will be open for inspection at a time to be advised. Please contact the agents to register your interest and confirm inspection times.

Interstate BiddingInterstate bidding is available strictly by prior arrangement at one of Burgess Rawson’s interstate offices.

P

P

P

N

Power St

CrownPromenade

Que

ensb

ridge

St

Crown Towers

Escalators

Main Complex EntryAtrium

Casino

Casino

Food Court

Yarra River

Yarra Promenade

Kings St

RailwayFlinders St

Palladium

MelbourneExhibition

Centre

Clarendon St

Whiteman St

Whiteman

St

Kings Way

Crown Conference

Centre

River Room

Multi-level Car Park

City Rd

Crown Metropol

Haig Ln

Clarke St

Normanby Rd

Method of Sale

The property will be offered for sale by Auction

Auction Wednesday 9th August 2017 at 11am

River Room, Crown Casino, Melbourne VIC

Burgess Rawson & Associates Level 7, 140 Bourke Street Melbourne VIC

Natalie Couper 0413 856 983 [email protected] Adam Thomas 0418 998 971 [email protected]

JLL Level 2, 25 Grenfell Street Adelaide SA RLA 1842

Roger Klem0423 919 373 [email protected] Tom Bailey 0407 607 266 [email protected]


Property Management

Burgess Rawson is not only a market leader in investment sales; we are also regarded as highly professional property managers. With an Australia-wide management portfolio of well in excess of $2billion, we are able to equally manage property whether it is CBD, metropolitan or regionally located.

• More than Rental Collection - care for your property and investment. Professional property management enhances and secures your tenant relationship, provides property accounting (including tax invoicing/GST/BAS) reports and maximises rental. We take the weight off your shoulders.

• Achieve $ savings - through our buying power and access to the best providers: insurance brokers, maintenance contractors etc. We have the contacts and long standing relationships to be at your disposal.

• Improve your cash flow - Apart from ensuring regular rental increases are enacted to maximum sustainable levels, a professional property manager reviews council rating values, as well as accessing the best taxation depreciation assessment to improve your after income tax bottom line. We aim to add more to your overall capital value.

• Not missing a beat - With our daily contact in the market, we hear about new developments, tenants on the move etc. Whether this information helps protect your investment or leads to further opportunities, we have our ears to the ground.

• Problem solvers Owning property has never been more complicated, and highly regulated. We are fully conversant with the Retail Tenancies Act, Town Planning and Occupational Health and Safety Regulations. We can anticipate and prevent problems.

• Experience and involvement - Our professional property managers offer a wide range of expertise. Time in the profession, and continuous improvement and involvement in the property sector is an intellectual pursuit. We can provide a pool of such experience to individual clients in a way we believe self-managed property owners cannot.

• Value for money - free yourself up to concentrate on the returns of your investments, rather than the daily issues which can arise from your property. The small cost involved in professional management is money well spent. We have the resources to service your needs.

To discuss your particular property management’s needs, please contact either your Burgess Rawson selling agent or Ingrid Filmer today.

Ingrid FilmerDirector Principal Property Management Department 0413 860 312 [email protected]

Disclaimer

The information contained in the report/information memorandum has been prepared in good faith and due care by the Vendor, Burgess Rawson and Jones Lang LaSalle (SA) Pty Ltd. Any projections contained in the report therefore, represent best estimates only and may be based on assumptions.

The information contained herein is supplied without any representation as to its truth or accuracy. All interested parties should make their own enquiries to satisfy themselves in all aspects and obtain their own independent advice in order to verify any of the information. All stated dimensions and areas are approximate.

The vendor does not represent or warrant the accuracy of any information contained in this document. Subject to any statutory limitation on its ability to do so, the vendor disclaims all liability under any cause of action, including negligence, for any loss arising from reliance on this document.

Specifically, we make the following disclosures:

• All areas, measurements, boundaries, car space numbers, rents are approximate only and subject to final confirmation;

• The indicative depreciation schedule has been provided by Napier & Blakeley and is an estimate only and cannot be used for tax purposes.

The information contained in this document is provided as a guide and an aid to further investigation by potential purchasers. Prospective purchasers should seek legal, financial and other appropriate expert advice in order to verify the accuracy of the information presented in this document

GST Disclaimer

Burgess Rawson and Jones Land LaSalle (SA) Pty Ltd advises that the financial information in this report relating to income, outgoings and the like is provided without reference to the possible impact of GST, if any. Purchasers should make their own assessment of the impact of GST on the investments and the returns derived there from after obtaining expert professional advice.


Title Lease Schedule

LEASE

PRIVACY COLLECTION STATEMENT: The information in this form is collected under statutory authority and is used for maintaining publicly searchable registers and indexes. It may also be used for authorised purposes in accordance with Government legislation and policy requirements.

LAND DESCRIPTION

THE WHOLE OF THE LAND IN CT VOLUME 5125 FOLIO 928

ESTATE & INTEREST

IN FEE SIMPLE

LESSOR (Full name and address)

GLOBAL SKY PROPERTIES PTY LTD (A.C.N. 169 332 370) of PO Box 816 Surfers Paradise QLD 4217

LESSEE (Full name, address and mode of holding)

GLOBAL SKY EDUCATION PTY LTD (A.C.N. 609 189 040) of PO Box 816 Surfers Paradise QLD 4217

TERM

COMMENCING ON 1ST AUGUST 2017

AND

EXPIRING ON 31ST JULY 2032

together with 3 rights of renewal as contained in clause 34 of this Lease

RENT AND MANNER OF PAYMENT (or other consideration)

The Lessee shall pay the Lessor an annual rent of SIXTY THOUSAND DOLLARS ($60,000.00) plus GST by equal monthly payments in advance of $5,000.00 each plus GST (and proportionately for any period of less than one month), subject to review at the times and in the manner set out in clause 33. The first payment shall be made on the 1st day of August 2017 followed by a payment on the 1st day of each calendar month.

IT IS CONVENANTED BY AND BETWEEN THE LESSOR AND THE LESSEE as listed herein: (Covenants, where not deposited, to be set forth on insert sheet(s) and securely attached)

Page 1 of 33

Burgess RawsonInformation Memorandum - 31 Camille Street, Hallett Cove SA

Lease Schedule Lease Schedule

6 of 33

FIRST SCHEDULE

ITEM 1 - PERMITTED USE (Clause 31)

LICENSED CHILDCARE FACILITY COMPRISING EDUCATION AND CARE CENTRE, TRAINING AND ANCILLARY USES

ITEM 2 - PROPORTION OF OUTGOINGS (Clauses 9.12, 15 and 32 - if applicable)

100%

ITEM 3 - RENT REVIEW DATE(S) (Clause 33)

Date of Review

1ST DAY OF AUGUST

(a) Percentage Rent Review Years

2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030, 2031, 2033, 2034, 2035, 2036, 2038, 2039, 2040, 2041, 2043, 2044, 2045 and 2046

(b) Market Rent Review Years

2032, 2037 and 2042 (subject, if applicable, to operation of renewed term(s))

ITEM 4 – RENT REVIEW METHODS (Clause 33)

CPI – NOT APPLICABLE 1.1 The rent shall be reviewed as at the date and in the years specified in Item

3(a) of the First Schedule by varying the rent payable immediately preceding such review (without reference to and taking no account of any rent or other incentive) by a percentage figure equal to the percentage by which the Consumer Price lndex (Adelaide - All Groups) published by the Australian Bureau of Statistics has varied during the one year period immediately preceding the relevant review date.

1.2 lf during the term such Index ceases to be published or if a substantial change

takes place in the method or basis of calculating such Index the relevant rent variation shall correspond with the variation over the relevant one year period in the weighted average for Australia of weekly wage rates to be determined by the Australian Bureau of Statistics and if the said Bureau is unwilling to make a determination then the reviewed rate of rent shall be determined by a Land Valuer appointed at the request of either the LESSEE or the LESSOR, by the person for the time being holding or acting in the office of President of the Australian Property Institute Inc. (SA Division) or its successor (the cost of

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which valuation shall be borne by the LESSEE and the LESSOR equally) which valuer shall be deemed to act as an expert and not as an arbitrator and having regard to what would have been the increase in such index had it continued or had it continued to be determined on the same basis as at the date of this Lease as the case requires.

1.3 The stipulation in this Lease relating to the time method and manner of

payment of rent shall apply to the reviewed annual rent installments varied from such date or dates (as the case may be) and any adjustment necessary in respect of any underpayment or overpayment of any installment paid after any such date or dates at the rate previously applicable shall be paid by the LESSEE to the LESSOR (or vice versa) forthwith upon the reviewed annual rent being determined by the LESSEE paying the current installments of rent due pending determination of the reviewed rate or rent and any failure by the LESSOR to effect such review at the relevant time shall not prevent such review being effected retrospectively at a later time.

CURRENT MARKET RENT 2.1 The rent shall be reviewed as at the date and in the years specified in Item

3(b) of the First Schedule to a rate agreed by the LESSOR and the LESSEE but failing agreement shall be determined by a Land Valuer appointed, at the request of either the LESSEE or the LESSOR, by the person for the time being holding or acting in the office of President of the Australian Property Institute Inc. (SA Division) or its successor (the cost of which valuation shall be borne by the LESSEE and the LESSOR equally) which valuer shall be deemed to act as an expert and not as an arbitrator and who shall be instructed to determine the current market rent for the Premises.



2.3 In determining the current market rent for the Land the Land Valuer shall:

2.3.1 exclude the value of any goodwill created by the LESSEE'S occupation and the value of the LESSEE'S fixtures and fittings within the Land and shall also exclude any deleterious condition of the Land if such condition results from any breach of any term of this lease by the LESSEE;

2.3.2 have regard to all of the terms of this Lease in particular to any liability

on the part of the LESSEE to pay or contribute to rates, taxes (and in particular land tax) and outgoings pursuant to this Lease and as if the


Lease Schedule Lease Schedule

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Land were unoccupied and offered for rent for the Permitted Use for the period until the expiry of the current term;

2.3.3 have regard to the current market rent of premises which are

comparable with the Land;

2.3.4 take into account the value of all the LESSOR'S fixtures, fittings, plant and equipment on the Land (and if applicable in the building of which the Land forms part) and the value of any fit-out or other tenancy works provided by the LESSOR;

2.3.5 have regard to the GST exclusive rate of rent; and

2.3.6 have regard to any other matters the Land Value reasonably considers

relevant. The Land Valuer must give detailed reasons for the determination and must specify the matters (including if relevant, incentives and concessions) taken into account in making the determination.

PERCENTAGE RENT REVIEWS 3.1 The rent shall be reviewed as at the date and in the years specified in Item

3(a) of the First Schedule by increasing the rent payable immediately preceding such review (without reference to and taking no account of any rent or other incentive) by three per centum (3%) per annum.



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ITEM 5 – RIGHT(S) OF RENEWAL (Clause 34)

First Renewed Term

5 YEARS

Second Renewed Term

5 YEARS

Third Renewed Term 5 YEARS

ITEM 6 - REPAINTING PERIOD (Clause 9.11)

5 YEARS OR UPON THE EXPIRATION OR SOONER DETERMINATION OF THE TERM OR ANY EXTENSION OF IT.


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