The Fund objective is to provide a first mortgage loan facility in the amount of $5.805M including capitalised interest and line fees to assist in financing the construction of an 80 place childcare centre in Georges Hall, NSW. The third-party Operator has committed to a 10+10+10 year agreement for Lease at a starting rental of $460k plus Outgoings per annum upon completion of the centre.

The operator is a well-established national childcare operator with more than 60 childcare centres across NSW, VIC and the ACT.

The Syndicate is targeting a forecast IRR of 11.05% p.a. over a 21 month term with distributions and return of capital at loan maturity.

The Development will be delivered by a third-party builder and the project’s architect will be engaged as project manager and site superintendent. The family sponsoring this development are experienced passive property investors and view the project as a way to diversify their existing rental income. Guarantees are being provided by family members involved in the project, who hold an estimated $6.19m in net assets, primarily Sydney residential real estate. It is their intention to refinance the construction debt once the centre is complete and trading. Construction is expected to run over an 18-month programme, with the builder submitting monthly progress claims that are reviewed by the Superintendent and Vado’s appointed Quantity Surveyor before being approved for payment.