Lonsec’s Recommended rating indicates Lonsec has strong conviction that the Fund can generate risk-adjusted returns in-line with relevant objectives and is considered an appropriate entry point for investors to this asset class.

In its product review report, Lonsec highlighted the strong alignment between Australian Unity’s purpose and the Childcare Property Fund’s investment strategy as a key strength. It mentioned advantageous market drivers in the national childcare sector including long-term policy support and favourable demographic changes driving demand for childcare services.

Mark Delaney, Fund Manager of the Childcare Property Fund at Australian Unity, said the rating validated the Fund’s investment strategy and highlighted strong market drivers underpinning childcare property.

“Lonsec’s rating is an important recognition of our objectives, management approach and track record as a leading investor in nation-building social infrastructure. It’s also a testament to the fund’s stable portfolio and strong sector performance.

“Our Childcare Property Fund’s purpose is to give Australian investors the opportunity to partner in the creation of a high-quality childcare portfolio across Australia, contributing to better early childhood development outcomes whilst receiving quarterly income and capital growth opportunities,” said Mr Delaney.

Launched in early 2022, the Australian Unity Childcare Property Fund’s portfolio includes 15 childcare properties across Australia, with a gross asset value of approx. $90 million and Weighted Average Lease Expiry (WALE) of 14.74 years.

The Childcare Property Fund is one of several Social Infrastructure funds established by Australian Unity including Specialist Disability Accommodation, Seniors Living, Healthcare Property, and Purpose-Built Student Accommodation. These funds aim to capitalise on favourable demographic and macroeconomic tailwinds to deliver strong risk adjusted returns to investors while adding valuable capacity in these essential sectors.

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