Artemis Property Scheme

Our successful childcare centre property scheme is open for new investment as a result of purchasing 3 additional properties, bringing the total to 14 centres across the South Island and lower North Island

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register your interest
Property type Childcare Centre Freehold Property
Property value $48.49m
Pre-tax cash distributions 7%
Portfolio LVR
(Loan to Value Ratio)
45%
WALT
(Weighted Average Lease Term)
9.6 years
Number of interests 680
Minimum investment required $50,000
The Key Features
  • The Artemis Property Scheme has entered into three individual (but interdependent) conditional agreements to purchase the freehold ownership of three early childcare centre properties located in Christchurch CBD for a combined purchase price of $14.42m
  • Confirmation occurred on 17 September 2021
  • Settlement of the 3 centres is expected to occur on 5 October 2021
  • The 3 centres will be added to the existing portfolio of 11 centres across the South Island (8) and lower North Island (3)
  • Funding for the 3 centres will be by way of new investor capital ($6.8m) and a bank loan ($8.5m), bringing the total Scheme portfolio LVR to approximately 45%
  • Of the existing centres in the Artemis Property Scheme, 8 are leased to Evolve Education Group (EEG), 2 to Provincial Education Group (PEG), and 1 to BestStart Educare (BSE). The 3 additional childcare centre properties to be purchased, situated in the Christchurch CBD, are leased to Grow Active
  • As at 31 March 2021, the 11 existing centres were valued at $34.07m
  • Following settlement of the 3 centres, forecast pre-tax cash distributions are expected to be 7.0% per annum for the year ending 31 March 2023*
  • The Artemis Property Scheme will be continued under the existing Proportionate Ownership structure
  • This is not a PIE investment. Investors will be individually responsible for payment of their own tax.

* Returns are not guaranteed. Past performance does not guarantee future results.

The Investment Opportunity
  • This offer is only available to investors who qualify as wholesale investors under the exclusion provisions of Schedule 1 of the Financial Markets Conduct Act 2013
  • 680 new proportionate interests in the Scheme of $10,000 each will be issued with a minimum investment of $50,000 (five interests) for new investors and then in multiples of $10,000 thereafter
  • Investor commitment is required by 17 September. Following this date, interests may be purchased as secondary sales, subject to availability.
  • The new interests will rank equally with the existing 1,953 restructured proportionate interests on issue in the Scheme
  • Distributions will commence on the first business day of the month following the Settlement Date and will be paid monthly in arrears thereafter
The Centres
  • Active Explorers Masterton
  • Active Explorers Mana
  • Active Explorers Grenada
  • Active Explorers Blenheim
  • Active Explorers Richmond
  • Active Explorers Invercargill
  • Lollipops Hazeldean
  • Lollipops Rolleston
  • Kawatiri Kids Early Learning Centre
  • Hardykids Early Learning Centre
  • BestStart Styx Mill
  • Grow Active Welles Street
  • Grow Active Balfour Terrace
  • Grow Active Cashel Street
The Tenants

Evolve Education Group (NZX/ASX:EVO) manages over 110 centres throughout New Zealand with a staff roll of over 2,100 and over 8,700 children.

Provincial Education Group is privately held. It manages approximately 60 centres in New Zealand with over 1,300 staff and over 4,000 children.

Best Start is a registered charity owned by the Wright Family Foundation. As New Zealand’s largest provider of early childhood education, Best Start manages over 270 centres nationwide and employs over 4,500 permanent teachers.

Grow Active is relatively new to the industry. The centre managers have significant experience in early childhood education. It is owned and operated as a joint venture between two childcare centre operators in Hawke’s Bay and the Directors of property development company, Box 112, with the former with over 40 years combined experience in the childcare industry. In an independent capacity, the childcare centre operators have previously successfully established and managed 6 independent centres in Hawke’s Bay and Auckland.

The Structure

The Scheme is a managed investment scheme for the purposes of the Financial Markets Conduct Act 2013 ('FMC Act'). As the Scheme is only open to wholesale investors (as that term is defined in the FMC Act) and is therefore not a regulated offer, the Scheme is not required to be registered under the FMC Act.

The Scheme has no fixed term. The Scheme and/or an individual Subscriber's Interests in the Scheme may be terminated in various circumstances. These are provided for in the Restated and Amended Ownership and Management Deed (the ‘OMD’)

The parties to the OMD are the Manager (Quarry Capital Limited), the Nominee (Artemis Nominees Limited) and the Subscribers (the investors).

Find out more & register your interest

Please fill out this form to receive your Information Memorandum. Once we receive your contact details one of our friendly team will be in touch in the next 48 hours.

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Warning New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer because there is an exclusion for offers where the amount invested upfront by the investor (plus any other investments the investor has already made in the financial products) is $750,000 or more. As a result of this exclusion, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for this investment. Investments of this kind are not suitable for retail investors. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.

This is not an offer to the public This offer is only available to investors certified as ‘wholesale investors’ within the meaning of clauses 3(2), 3(3)(a) and 3(3)(b) of Schedule 1 of the Financial Markets Conduct Act 2013.