new usa property trust

ABC Learning eyes $300m property trust float deal
Author: By CAROLYN CUMMINS, SYDNEY
Date: 05/02/2007
Words: 505
Source: AGE
Publication: The Age
Section: Business
Page: 5


EDDY Groves's spate of deals continues with the expected launch of the Global Education Trust, which is expected to be worth more than $300 million.
Melbourne stockbroker Austock is in the pre-marketing phase of the float.

The trust will own between 200 and 300 child-care centres across the US.

It is anticipated that Mr Groves's ABC Learning will be closely associated with the new trust because his group is the primary lessee of the child-care centres.

Although the trust's pricing is still being finalised it is expected Mr Groves's ABC Learning will take an equity stake in the float.

Austock Property Management is aiming for listing of the new Global vehicle in the June 2007 quarter.

The proposed trust will be run in tandem with the existing Australian Education Trust, in which ABC Learning holds a 12 per cent stake. It also leases most of the 300 centres the trust owns in Australia and New Zealand.

Australian Education Trust owned 303 properties, of which 275 were freehold and 28 leasehold, and was valued at $278 million at December 31.

That was an increase of 54 centres from the first half of the 2005-06 year. This change in centre numbers comprised 68 settlements and 14 disposals at a net gain of $452,000. All but six centres in Australian Education Trust's portfolio are operated by ABC Learning.

RAB