Goodstart to Buy Centres of Collapsed Edge Early Learning as Arena Stands Firm

By the Editorial Team · Thursday, October 8, 2026

Goodstart Early Learning has agreed to acquire 31 childcare centres from the collapsed Edge Early Learning to bring stability to affected communities and expand its nationwide network. This acquisition, still subject to due diligence and landlord approval, highlights efforts by a major not-for-profit to address ongoing challenges in the childcare sector and support vulnerable families.

Goodstart Early Learning, Australia’s largest childcare provider, has reached an agreement to acquire more than 30 centres previously operated by Edge Early Learning, which collapsed in August amid industry-wide challenges including rising costs and safety concerns. The deal covers 31 centres and aims to provide greater stability to the affected communities, although 33 additional Edge facilities remain unsold.

Edge Early Learning was owned by private equity firm HEAL Partners, with investment from Centennial Property Group, a real estate manager. The company faced mounting financial difficulties, including falling behind on rent payments, which prompted its largest landlord, Arena Real Estate Investment Trust (REIT), to issue a default notice in early August. Arena REIT owns 27 of Edge’s centres and reportedly did not support a proposed turnaround plan.

The current agreement includes services at 20 of the 27 centres owned by Arena and operated by Edge. Arena is conducting due diligence on the deal and considering its consent regarding the assignment of leases. The administrator, KordaMentha, is actively pursuing the sale of the remaining 33 centres, which includes seven additional sites owned by Arena. Arena also holds approximately $4 million in security deposits related to Edge’s leases.

Goodstart, a not-for-profit organisation formed by The Benevolent Society, Mission Australia, the Brotherhood of St Laurence, and Social Ventures Australia, operates a nationwide network of 666 childcare centres. The organisation has expanded its role as pressures have intensified within the sector.

Goodstart’s chief executive, Ros Baxter, emphasized that the acquisition process is still in its early stages, with due diligence underway only for part of the network. She noted the organisation’s focus on providing safe, high-quality early learning and its openness to opportunities to extend services to new communities, particularly those with greater vulnerability.

“While there’s a lot more work to do and a decision has not yet been made, as a not-for-profit we exist purely for children and we are always looking for ways to support children and families,” Dr Baxter said. She acknowledged ongoing uncertainty for staff and families connected to the affected centres and highlighted Goodstart’s collaboration with the administrator, regulators, and government bodies to align with broader policy and safety objectives.

Following the announcement, Arena REIT’s shares rose by 13 percent, closing at $2.35. This development underscores the broader ramifications of the childcare sector’s financial strain and the efforts by not-for-profit providers to maintain access to early childhood education amid industry disruptions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.