Property developer says he's frontrunner in race for ABC

The New Zealand arm of ABC Learning Centres avoided the receivership of its Australian parent and is generally regarded as a profitable operation. Photo / Supplied

Christchurch property developer Hamish Ireland says he is the preferred bidder for the New Zealand arm of the ABC childcare chain.

Competition appears to be hotting up to acquire the Kiwi subsidiary, which managed to sidestep the receivership of its Australian parent and is an ostensibly profitable business.

ABC's receivers put the 127 New Zealand childcare centres and College of Early Childhood Education up for sale several months ago and a number of parties have been in the running.

The latest twist has been the emergence of an eleventh-hour mystery bidder.

ABC's local general manager Craig Presland said that the party, which he would identify only as a large childcare provider, had come forward about three weeks ago and time had to be allowed for it to conduct due diligence.

But Ireland, who owns the Christchurch-based Ireland Group, said yesterday that his company had won a tender process run by ABC's receivers McGrath Nicol. "We were awarded a preferred bidder status and we intend to go to contract within about a week."

He said as far as Ireland Group was concerned the process was "very much still alive".

He said his company was aware of the latest bidder and it perceived its interest as a backup offer.

He would not say how much he had offered for the Kiwi operation.

Receivers McGrath Nicol refused to comment on the sale process.

Ireland said his company was a past childcare operator. It ran the Mother Hubbard chain which it sold to ABC about six years ago.

Since then it had been involved in property development around the country. It specialised in rezoning large pieces of land to business use for its clients, and had done retail and hospitality developments, he said.

It also developed ABC childcare centres, buying the properties, consenting them for use as childcare, and then building them.

It is currently owed $7 million following the collapse of 123 Global, the company which was the middleman in supplying ABC with centres on both sides of the Tasman.

Ireland said his company was "well placed" to run the Kiwi arm of ABC. "We've done many childcare centres obviously because that's what we know well."

The company had funding in place for its bid, he said, but "like every sector of business in New Zealand it's been extraordinarily difficult and probably unprecedented".

Ireland saw good prospects for the childcare sector as the birth rate went up. He said an additional 8000 new places were expected to be required by 2011 with further increases predicted.

"This particular government seems to be favourable to the idea of working with the private sector to meet that demand."

UP FOR GRABS

* ABC Developmental Learning Centres (NZ) runs 127 childcare centres and an early childhood college.

* The receivers of its Australian parent have put the Kiwi subsidiary up for sale.

* Christchurch property developer the Ireland Group says it is the frontrunner to acquire the company.