Darwin childcare asset snapped up by private investor for $6.6 million

Jason Roberts

Oct 29, 2024

Save

Burgess Rawson’s Beau Coulter, Natalie Couper and Andrew Havig in conjunction with Craig Inkster of McGees Property have announced the sale of Zuccoli Early Learners in Darwin, Northern Territory for $6.6 million. Mr Coulter highlighted the asset's strong appeal to the purchaser, noting the absence of land tax in the Northern Territory as a key advantage. Mr Inkster said the Top End is a hotspot for investment– with a $50 billion pipeline of major projects, buyer confidence remains high. “The childcare sector remains one of Australia’s most in-demand asset classes, buoyed by robust government funding and ongoing population growth in key regions," Ms Couper added. Zuccoli Early Learners, an established operator with three successful locations, occupies the premises on a 10-year net lease through to 2028, with options extending to 2048. The asset has a net income of $477,620 per annum. Rent increases are fixed at 3% annually with ratchet provisions at market reviews, providing continual rental growth. The site spans 3,140 sqm and features three street frontages. It is located opposite Mother Teresa Catholic Primary School and Zuccoli Primary School, and close to Mackillop College. Ms Couper emphasised the strength of the local market, noting, “Zuccoli sits within the City of Palmerston, home to the highest demographic of children under five in Australia. This, combined with the rapid population growth, makes it an incredibly secure investment.” The Federal Government’s commitment to the childcare sector further enhances this opportunity, with $12.7 billion in funding allocated for the 2023-24 period and an additional $4.7 billion under the Cheaper Childcare Reform, which came into effect in July 2023.

This reform is designed to make early education more affordable for over 1.2 million families, ensuring continued demand for quality childcare services.

Don’t miss a thing

NSW Early Learning Commission conducts 220 unannounced visits

More than 100 regulatory officers conducted unannounced inspections at over 220 early learning services in a single-day compliance operation, as the NSW Early Learning Commission intensifies oversight across the sector.

Failing the Most Vulnerable: Two WA Childcare Providers Penalised Over Supervision Breaches

In February the Western Australian State Administrative Tribunal handled two separate disciplinary proceedings brought by the CEO of the Department of Communities against out-of-school-hours care (OSHC) providers. Both cases highlight critical failures in active supervision, particularly concerning highly vulnerable children diagnosed with autism who managed to wander away from their respective services unnoticed.

Keeping children safe with one simple lesson

Water safety remains at the forefront of national concern, as drowning continues to be the leading cause of accidental death for children aged 0-4.

Prime childcare and medical investment opportunity hits the market in Thornhill Park

A permit-approved early learning and medical asset in Melbourne’s west is set to test investor appetite for secure income, long-term leases and value-add potential in a high-growth corridor.

Workforce planning in ECEC: from compliance requirement to strategic advantage