Childcare portfolio expected to surpass $85 Million brought to market 

A national childcare portfolio expected to exceed $85 million in value has  been brought to market, comprising 11 early education investments across Victoria, New South Wales,  Queensland and the ACT. 

Presented by CBRE, the offering spans metropolitan growth corridors and key regional markets and is  underpinned by long lease terms, annual rental growth and strong demand for early education services. 

The portfolio features assets leased to some of Australia's leading childcare operators with opportunities  ranging from entry-level investments through to institutional-grade assets, with many underpinned by long lease terms, annual rent increases, net lease structures and strong childcare demand fundamentals. 

Among the campaign highlights is Little Learners South Morang (VIC), which generates $1.17 million per annum under a new 15-year net lease and is licensed for 282 places. Young Academics Dharruk  (NSW) returns $671,600 per annum on a new 15-year lease to 2040, while Busy Bees Crace (ACT) generates $592,003 per annum and is leased to a global operator with more than 1,000 centres worldwide.

Eden Academy Thomastown (VIC) offers a 15-year net lease with options extending to 2060 and fixed annual rent increases of three per cent. Other highlights include Goodstart Early  Learning centres in Wynnum West, Broadmeadow and Torquay, with lease terms extending as far as 2081 along with a G8 Education centre in Belmore providing upside opportunities.

CBRE’s Michael Vanstone said childcare assets continue to perform well with investor appetite  exceptionally strong. 

"Investors are attracted to the combination of long lease terms, built-in rental growth and an underlying  service that remains essential for Australian families. When you combine those fundamentals with strong operators and growing catchments, it creates a very appealing long-term investment proposition." 

CBRE’s Adam Thomas said the campaign showcased the depth and diversity of opportunities currently available in the childcare sector.

"This portfolio spans some of Australia's strongest population growth markets and features a range of lease structures that provide long-term income security. Whether investors are seeking a metropolitan trophy asset or an entry point into the childcare sector, there is a breadth of opportunity that is rarely brought to market in a single campaign." 

The childcare assets form part of CBRE's August Portfolio campaign, one of Australia's largest commercial property marketing programs, featuring investments across early education, healthcare, fast  food, convenience retail, industrial and large-format retail sectors. The childcare assets are being offered through a combination of Expressions of Interest and Investment Portfolio Auction campaigns throughout August.