Childcare funding a boon for new listings
The ongoing and increasing level of government support for childcare has further bolstered the investment credentials of a Noble Park childcare centre that will be auctioned this month.
The childcare centre at 61-63 Chandler Rd features a coveted 20-year net lease and options to 2055 with one of the industry’s most respected operators, Story House Early Learning.
The 642sqm facility is licensed for 92 long day care places, while the lease includes fixed 3% annual rent increases and the tenant is required to pay all outgoings, including land tax.
Burgess Rawson childcare specialist Natalie Couper says the strength and security of childcare as an investment was highlighted by the Federal Government’s recent support package, which provides free childcare to allow parents to continue working during the COVID-19 pandemic.
“If you’re going to invest your money in something, wouldn’t you want it to be an asset that is going to have continuous support?” Couper says.
“It’s the only industry to see sector-specific funding because the government recognises just how crucial it is for childcare centres to remain open in order for essential workers to continue to work.”
“No other industry or sector has received this level of support, which further reinforces investor confidence in childcare.”
The Noble Park property also benefits significantly from its strategic location only 600m from the Princes Highway/EastLink junction and close to Heatherton Rd, within an established and growing residential community.
“Even more critically, there are 18 schools and educational facilities within a 3km radius of the centre. Schools are the lifeblood of childcare, providing a ready supply of young families requiring this service, and few childcare centres anywhere in Australia would come close to this level of school density,” Couper says.
“It’s within an established residential location that’s incredibly busy.”
Burgess Rawson’s 137th Investment Portfolio Auction will be held in Crown Casino’s River Room from 10.30am on Wednesday, June 24. In-room attendance will be restricted to 50 pre-registered bidders, with online and external bidding facilities available to other buyers.
Published by Real Commercial