FOLKESTONE EDUCATION TRUST Setting A New Benchmark For Australia s Early Learning Centres APRIL 2018 Northcote, VIC
FOLKESTONE EDUCATION TRUST (ASX: FET) The ASX listed Folkestone Education Trust (ASX: FET) is the leading provider of early learning accommodation with 407 early learning centres in Australia and New Zealand. At 31 December 2017, FET had a pipeline of 26 development sites with 11 sites DA approved and/or under construction and 15 sites awaiting planning approval. The development pipeline of 26 sites has a forecast upon completion value of $156 million and is expected to add approximately $10.0 million per annum of net rental income to FET. FET continues to target new opportunities based on our strong understanding of the market, with the key focus on selecting high quality real estate supported by sound early learning demand and supply fundamentals. With over $150 million of centres currently under development, each state-ofthe-art centre has been designed and tailored to suit the individual needs of the operator and to complement the local community landscape. Recently completed early learning centres have been delivered in five states for seven different operators creating a total of 2,682 long day care places. FET s existing portfolio comprises of over 400 early learning centres with a total asset value of over $900 million. To date, FET has committed to over $300 million in it s development pipeline across Australia and New Zealand FET has an internal development management team who manage the delivery of centres from inception to completion, we work closely with operators to ensure their requirements are not only met, but exceeded FET is dedicated to long term investment in early learning real estate that provides a safe and healthy environment for future generations. We build them, then stay for the journey FET is the leader in the early learning real estate industry, with an active involvement in leasing to over 30 early learning operators and an extensive development pipeline FET has a strong track record of achieving DA approval within six months, and are continually enhancing their methods to increase the speed of delivery through development of prefabricated centres that can halve the delivery time Having significant funding capacity, we can offer long lease term with flexible funding options to operators 2
RECENTLY COMPLETED EARLY LEARNING CENTRES Recently completed early learning centres have been delivered in five states for seven different operators creating a total of 2,682 long day care places. CENTRE EXTERIORS Brighton East, VIC Northcote, VIC Camberwell, VIC Highett, VIC Lyndhurst, VIC Cheltenham, VIC South Morang, VIC Williams Landing, VIC Wyndham Vale, VIC Gledswood Hills, NSW Maitland, NSW Kilburn, SA CENTRE INTERIORS & OUTDOOR SPACES Brighton East, VIC Northcote, VIC Camberwell, VIC Highett, VIC 3
ASSETS UNDER DEVELOPMENT 26 SITES UNDER DEVELOPMENT AUSTRALIA FET continues to target new opportunities based on our strong understanding of the market, with the key focus on selecting high quality real estate, supported by sound early learning demand and supply fundamentals. Sydney, NSW Melbourne, VIC Adelaide, SA Perth, WA 4
EARLY LEARNING CENTRES UNDER DEVELOPMENT FET have 26 sites under development with a number of other opportunities in exclusive due diligence, indicative examples include: Mont Albert North, VIC Box Hill North, VIC Bonbeach, VIC FET EXISTING PIPLINE Suburb State Places Operator Status Construction Status Armstrong Creek VIC 126 Committed Under Construction Baldivis Grove WA 104 Committed Under Construction Balwyn North VIC 76 Committed Under Construction Belmont WA 96 Committed Under Construction Bexley NSW 111 Committed Planning Bonbeach VIC 126 Committed Planning Box Hill North VIC 108 Committed Planning Coburg North VIC 95 Committed Planning Frankston South VIC 126 Committed Planning Hawthorn VIC 109 Committed Under Construction Kensington WA 96 Committed Planning Killarney Heights NSW 111 Committed Under Construction Kilsyth VIC 92 Committed Pre-Planning Mont Albert VIC 128 Committed Planning Mooroolbark VIC 124 Pending Pre-Planning Murrumbeena VIC 116 Committed Planning Narre Warren VIC 95 Committed Planning Noarlunga SA 97 Committed Under Construction Oran Park NSW 134 Committed Under Construction Reservoir VIC 100 Committed Pre-Planning Tarneit VIC 92 Committed Under Construction Templestowe VIC 108 Committed Pre-Planning Vermont VIC 96 Committed Planning Wynbrook VIC 124 Committed Planning Total: 26 2,795 5
INNOVATIONS PREFABRICATED Our prefabricated centres are built off-site, then moved and assembled at their final location. This method allows us to control and create high quality, innovative buildings, increasing speed, efficiency, precision, productivity and quality. A centre at South Morang, Victoria is our first completed prefabricated centre. This new technology will allow us to improve quality, reduce time frames, construction waste and costs, whilst supporting the Australian building industry. ENVIRONMENTALLY FRIENDLY Our centres include a wide range of sustainability measures, integrated into the design, reducing the ecological footprint without compromising quality Designs that promote operational efficiency through multi age group compliant designs that maximise utility and centre flexibility Roofs designed to collect rainwater, used for toilet flushing Solar panels installed to boost hot water and provide energy savings Appliances, fixtures and fittings comply with or surpass all Australian energy and efficiency star rating systems Bicycle racks are provided for employees to minimise a centre s carbon footprint Gardens developed to minimise water consumption and play areas to be generally permeable, complementing the surrounding landscape 6
FET CENTRE LOCATIONS Over 350 early learning centres in all states and territories of Australia, with an additional 51 centres in New Zealand AUSTRALIA Melbourne, VIC Sydney, NSW Brisbane, QLD Perth, WA Adelaide, SA 7
SITE IDENTIFICATION Identification of suitable locations is critical to the success of each early learning centre. This is achieved by: Identifying high success locations through proprietary modelling of demographic and socio-economic trends Key focus on under-supplied catchments in higher socio-economic locations with long term growth prospects Williams Landing, VIC Focus on infill sites within a ~20km radius of CBD as well as rapidly expanding growth areas A proven model in successfully developing quality centres with leading edge designs, in high demand locations Cheltenham, VIC CURRENT DEVELOPMENT & ACQUISITIONS $400 $350 $361m 60 sites Total investment of $361m in new centres. FET has a strong track record (94%) of sites moving to DA approvals $300 $250 $200 $118m 2 18 sites $64m 2 12 sites Purpose built to suit individual operators 70% located in high growth regions of Victoria and New South Wales Delivering Australia s best quality centres Camberwell, VIC $150 32 sites now completed and trading $100 $50 $179m 1 30 sites 55% completed centres in metropolitan infill locations 45% completed centres in outer metro growth corridors $0 Awaiting planning approval DA approved / under construction Developments / acquisitions completed 1 Current Valuation 2 Estimated On Completion Valuation Brighton East, VIC Nick Anagnostou Chief Executive Officer T: 03 9046 9900 Wendy Macafee Senior Development Manager T: 03 9046 9909 Clay Trembath Portfolio Manager Acquisitions & Development T: 03 9046 9902 Natalie Lynch Senior Portfolio Manager T: 03 9046 9908 Folkestone Education Trust Level 14, 357 Collins Street Melbourne VIC 3000 t: +61 3 9046 9900 f: +61 3 9046 9999 e: office@folkestone.com.au w: educationtrust.folkestone.com.au Like and Follow us on 8