Ann: NDO Investor Update, page-3

Nido has followed the standard industry practice in Australia (post the ABC Learning fiasco/meltdown in 2008) of deliberately not holding the freeholds.

This considerably reduces the costs of growth - and provides access to a larger pool of higher quality propertes - than just purchasing centres freehold. It allows management to concentrate on their area of expertise - operating childcare centres - rather than building a property portfolio.

In any event there are other listed property trusts that can provide exposure to a diversified property portfolio of childcare centres. So you can have the best of both worlds - pick the best childcare centre operator AND choose your preferred property investor (whether focussed on childcare centres or not).

Good luck with your investments.