BCV Early Learning Property Trust II

Blackoak Capital is raising $16 million of equity for its second early learning property trust.

BCV Early Learning Property Trust II aims to generate 7.7% p.a. average stabilised income distributions anchored by 15-year triple net leases to Wildflowers Early Learning across multiple centres.

Key Metrics

Average Stabilised Investor Distribution

7.7% p.a

Target IRR

11.2% - 18.2%

Target Cash X

1.99x

Low Target Debt Level

35% LVR

Estimated Portfolio Size

Five Centres

Fund Length

Eight Years

Investment Rationale

Stable Long-Term Rental Income
The Fund is projected to deliver a 7.7% p.a. average stabilised income distributions, with all properties leased to Wildflowers Early Learning on 15-year terms and CPI-linked annual increases (capped at 4.0%) ensuring consistent quarterly income post-development.

Capital Growth from Development
Each asset is being developed to a 7.20% yield on cost day-1. This provides Unitholders with a 70-120 basis point premium to the yield that centres can be purchased for, typically ranging from 6.00% to 6.50% in the open market at present. This is an implied development profit of 11% – 20%.

Development Cost Control
The rent is set as a percentage of development costs, meaning the investors’ cash flows are not affected by construction cost fluctuations.

Liquidity Mechanism
From year four investors can request a redemption of units with total requests each year capped at 5% of total fund GAV.

Low Levels of Gearing
The Fund targets a 35% loan-to-value (LVR) ratio with the first centres to be equity funded, before the introduction of debt.

Investment Overview

Key Features

Target Equity

$16 million

Liquidity

via Withdrawal Facility

Minimum Investment

$100,000 AUD

Eligible Investors

Wholesale Clients

Fund Length

Eight Years

Targeted Closing Date

30 September 2025

The Childcare Sector

Childcare is an established essential service responsible for positive social and economic outcomes through a direct impact on female participation rate, and crucial to early childhood development.

Demand Growth
From 2010–2024, centre-based care for children aged 0–5 grew 60%, now serving c.910,000 children.

Government Support
Federal childcare subsidies (CCS) exceed $14bn annually, supported by both major parties. Annual CCS expenditure has increased 83% since 2019.

Social and Economic Impact
Affordable childcare boosts female workforce participation (+6%), potentially increasing GDP by 8.7%.

Positive Market Outlook
Once a social service, childcare is now a stable, government-backed investment asset. Industry revenue is projected to rise from $21.8bn and surpass $25bn by 2030.

Liquidity
Each property can be sold individually via auction or private treaty, with potential for a portfolio premium at scale. The childcare asset market is highly active, with $720m in transactions recorded in 2024 and over $2.5bn over the past four years. Investors also have individual liquidity over their investment via the withdrawal facility.

The Tenant - Wildflowers Early Learning

Established in 2021, Wildflowers has demonstrated strong performance across four operational centres, with a fifth opening early 2026. The management team have decades of experience.

Premium Centre Design

Established in 2021, Wildflowers is a market leading provider of Early Learning across four custom designed and built operational centres, with a fifth opening early 2026 delivering 500 places across the portfolio. The management team have decades of experience.

Differentiated Learning Philosophy
All developments will exceed regulatory requirements and industry standards, offering 40%+ larger nature play spaces,  purpose-built dining areas, a focus on child safety in all aspects of design, large staff rooms, and staff courtyard areas.

Visit Wildflowers Early Learning

Request an Information Memorandum

The BCV Early Learning Property Trust II is currently open for investment to Wholesale Investors only. Please enter your details below to register your interest to receive an information memorandum.

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