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Welcome to the Australian Education Trust website
Australian Education Trust (“AET”) is the largest Australian
listed property trust investing in child care properties within
Australia and New Zealand. At 31 December 2008 the Trust
had total assets under management of $460 million and 439
properties in its portfolio.
The Trust is in a restructuring period to
reflect the changes incurred as a direct result of the failure and
subsequent receivership of its major tenant, ABC Learning Centres
Limited (Receivers and Managers Apointed).
AET expects to have new multiple tenants who
represent viable long term childcare operators as a result of the
ABC 2/PPB and ABC New Zealand sales process. Previous
guidance indicated that management expected a stronger outlook by
30 June 2009. With a sale of ABC1 potentially not
concluding until early in 2010, we are unable to provide any
greater certainty on new tenants for ABC1 at this time. We do
believe however, that the completion of the ABC2 process and the
selling and re-leasing of closed centres provides significant
confidence in AET’s strength, particularly from an underlying asset
value perspective. Although the ultimate outcome of ABC1 is
uncertain, the economic risk associated with ABC1 leases should be
less than was faced for ABC2.
The Directors are focused on ensuring the best
possible long term result can be achieved out of the externally
managed ABC1 and New Zealand sale processes and Management
continues to play as active a role as possible in protecting the
interests of the Unitholders.
The outlook for the future is for further
challenging market conditions given the general economic climate,
but with a view to a return to a sustainable distribution model
that AET enjoyed prior to ABC’s demise, but now potentially with a
diversified tenant base and income stream. The long term
leasing model adopted by AET remains relevant.
Management continues to take a proactive
position in relation to all matters surrounding ABC. Assuming a
static portfolio with no forecast acquisition activity and barring
further unforeseen circumstances, management envisages a return to
a more stable environment for AET in early 2010.
AET will continue to invest in childcare and other education
assets in the future.
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