Off-Market 82-Place Childcare Investment | Blue-Chip Location
Our team have secured an exceptional off-market opportunity in an 82-place childcare center in a blue-chip, family-rich suburb. It has a new lease and is at 100% occupancy with over 100 families on the waiting list. The center started operating in August 2024 and is generating an annual net income of $305,855 pa which translates into a rate of $3,685/child – a considerably fair market rate with some rental upside potential, given its excellent location and demand.
An extra long initial lease term of 20 years (until 2044) and 2 x 10-year options (2064), strengthens this asset as a ‘set-and-forget’ investment. Another strong factor of this opportunity is the Triple Net Lease, which means 100% of outgoings are fully recoverable from the tenant (including land taxes and management).
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Purchasing Costs
Key Highlights
- 1,463sqm freehold
- 38m street frontage
- Commenced at 100% occupancy
- Tenant have been operating 5 centers in WA
- Brand new high-quality build
- Significant depreciation benefits
- 3% fix increases with Market Reviews every 10-years (cap and collar at 10%)
- 20-year initial lease term + 2 x 10-year options (2064)
- Triple Net Lease (100% of outgoings recoverable from the tenant incl land tax and mng)
- High Socio-Demographic suburb
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