Thriving G8 childcare centre in regional Victoria up for grabs

A regional Victorian childcare centre with exceptional investment credentials is set to be the latest to tap into the commercial market’s appetite for childcare assets.

Backed by the security of a lease to industry giant G8 Education, the well-positioned centre at Wangaratta in the state’s north is being offered to market amid sustained demand for long-term, ‘set and forget’ investments.

The property at 46 Collyn-Dale Drive is anticipated to generate interest between $2m-$2.2 million after being listed for sale via expressions of interest.

The large, 3050sqm site enjoys an enviable location within walking distance of both Appin Park and St Bernard’s primary schools and among an established residential precinct close to Wangaratta Town Centre.

Offering a coveted lease to 2025 to Australia’s largest ASX-listed childcare provider – G8 Education, with four further five-year options, the centre offers the rare combination of a blue-chip tenancy with the potential for a high yield.

Additionally, the property has annual rent reviews plus ratchet provisions at the commencement of each further term, guaranteeing rental growth.

“Here you’ve got an entry level investment with a net lease and ratchet provisions, that is also high-yielding. What more could you ask for, really?” Burgess Rawson childcare specialist Natalie Couper said.

“It’s a very well put together centre and exceptionally well maintained. At the same time it’s a high occupancy facility with limited vacancies. It’s a really solid investment.”

The purpose-built facility is licensed for 78 long day care places and currently returns a net income of $153,206 per annum, plus GST and outgoings.

The listing comes as childcare continues to be a strong source of investor interest, with a centre at Epping in Melbourne’s north selling on a sub-6% yield at Burgess Rawson’s recent Portfolio Auction.

“The Federal Government’s increasing levels of funding to support the childcare industry in recent months further underlines why it is considered one of the industry’s safest asset classes and remains a target for buyers,” Ms Couper said.

The centre at 46 Collyn-Dale Drive is for sale by expressions of interest, which close at 3pm AEST on Wednesday, August 12, unless sold prior.