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

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.