Investors swoop on $10m childcare centres
Two Sydney childcare centre investments have traded for about $10 million apiece.
At St Marys, a five month old, 104 place complex which replaced a church hall at 42 Morris St collected $10.29 million – a 5.25 per cent net passing yield.
Montessori Academy – Australia’s largest privately owned childcare operator – is on a 15 year lease.
After 2040 it will be presented with options.
The incoming owner will be able to claim depreciation benefits for tax.
The site spreads 2198 sqm at the south east corner of Fleming St.
“Located in one of western Sydney’s fastest transforming corridors, the property sits within a high demand education catchment with 23 schools within three kilometres,” CBRE’s Michael Vanstone, who brokered the deal with Darren Beehag, said.
“The campaign attracted significant interest with over 130 enquiries from active childcare investors, driven by the combination of a blue-chip operator covenant, long-dated lease security and a high growth…location,” he added.
St Marys is 45 km from town (continues below).
Bexley deal
Meanwhile at Bexley, 12 km south of the CBD, Oxanda Education founder and GWS Giants deputy chairman Adrian Fonseca has sold a childcare centre with a leaseback.
The 91 place facility refurbished in 2017 on 1611 sqm at 12-14 Preddys Road collected $9.85m.
The initial lease, for a Bluebird Early Education complex, runs until 2041.
Oxanda then has options until 2071.
Based on the net annual income ($465,000), the result reflects a 4.72pc yield.
The sale was agreed 24 hours after the launch of an expressions of interest campaign. Stonebridge Property Group’s Tom Moreland, Michael Collins and Brett O’Neill were the agents.
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