Sydney west early learning centre sells for $10.3 million amid strong investor demand

A brand new purpose-built early education centre in Sydney's west has sold for $10,288,000, with CBRE recording 135 enquiries on the asset and a net yield of 5.25 per cent at a capital sale value of $95,260 per place.

The transaction was handled by CBRE’s Michael Vanstone and Darren Beehag, and forms part of a growing run of eight figure childcare sales Vanstone has been central to as investor appetite for the sector continues to strengthen.

Mr Vanstone said the result reflected the ongoing depth of demand for quality early education assets backed by established national operators.

Mr Beehag said this transaction highlights investor confidence in the sector, particularly for properties underpinned by national tenants and secure, long-term lease structures.

The property at 42 Morris Street, St Marys, sits on a 2,198 sqm corner site and operates as a 108-place long day care centre for children aged six weeks to six years.

Completed in Q3 2025, the centre is leased to Montessori Academy, Australia's largest privately owned childcare operator with more than 80 centres nationally, on a brand new 15-year net lease to 2040 with two further 10 year options extending to 2060. The lease features fixed three per cent annual rent increases and generates net income of $540,000 per annum plus GST, with the tenant responsible for all outgoings.

St Marys adds further weight to the investment case, with the suburb's population forecast to grow by 35 per cent by 2045, supported by major infrastructure investment, an upcoming Metro station and a NSW Government backed master-planned precinct. The immediate catchment already has 44 per cent more children aged zero to four within two kilometres compared to the NSW average.

Mr Vanstone said the sale highlights the defensive appeal of early education assets, with long leases, government-backed income and limited supply continuing to attract domestic and offshore capital.