Barwon Childcare Property Fund (BCPF)
The Barwon Childcare Property Fund (BCPF) invests in property with the strategy of acquiring and developing sites for use as childcare centres.
BCPF, which is now closed to new investors, sought to acquire and develop a portfolio of properties over a maximum of three years, from its 2015 inception, with a view to disposing of the properties by the end of its five-year term.
On behalf of BCPF investors, to-date Barwon has made three investments in properties located at Clayfield, Coorparoo and Kenmore in Queensland. Two of those three investments have been exited, with the Clayfield and Coorparoo investments each returning 20+ per cent to fund investors (net of fees).
Barwon Childcare Property Fund II (BCPF II)
Launched in 2017, the Barwon Childcare Property Fund II (BCPF II) is a closed-ended fund seeking returns from the development of properties in the childcare sector in Australia.
The Fund, which is now closed to new investors, sought to invest capital alongside developers to acquire properties, redevelop them into childcare centres and sell them on completion.
On behalf of BCPF II investors Barwon has made investments in a variety of structures, and in each instance has sought to generate equity-style returns commensurate with development risk (i.e. 20 per cent IRRs at the project level as a minimum).
To-date, the Fund has made three investments in properties located at Ringwood East (Vic), Croydon Park (SA) and Kelmscott (WA), with the Croydon Park investment returning in excess of 20 per cent to fund investors (net of fees).
This Fund has reached the end of its investment period and will not be making further investments.
Key Features of Barwon Childcare Property Funds
- The non-bank sector has grown significantly in recent years
- Australian credit market is undergoing a significant structural change
- Major Australian banks are losing market share to more competitive and nimble non-bank debt providers
- The Fund is invested across a range of individual Barwon originated and managed debt funds
- Australia-wide with the majority in or near major metropolitan areas
- Across project life-cycles from land acquisition, through construction, to completed properties
- Registered first-ranking mortgage security
- Below 65% loan-to-value ratios
- Experienced quality sponsors
- Low volatility fixed returns
- Low correlation with other property sectors