ChildcareHudson FarrFri 31 Jul 26
Childcare Portfolio Across Four States Expected to Fetch $85m
A national childcare portfolio spanning four states has come to market with an expected value of more than $85 million, as investor demand continues to grow for early education assets.
The 11-asset portfolio offered by CBRE includes assets in Victoria, New South Wales, Queensland and the ACT, and expected to appeal to investors seeking long-term income streams backed by population growth and demand for childcare services.
The childcare centres are within metropolitan growth corridors and regional markets, and supported by long lease terms, fixed rental increases and established operators.
CBRE’s Michael Vanstone said childcare assets remained a strong performer, with investor appetite driven by the sector’s defensive characteristics.
“Investors are attracted to the combination of long lease terms, built-in rental growth and an underlying service that remains essential for Australian families,” Vanstone said.
“When you combine those fundamentals with strong operators and growing catchments, it creates a very appealing long-term investment proposition.”
The portfolio includes Little Learners South Morang in Victoria, which generates $1.17 million in annual rent under a new 15-year net lease and is licensed for 282 places.
Young Academics Dharruk in New South Wales generates $671,600 a year under a new 15-year lease through to 2040, while Busy Bees Crace in the ACT provides $592,003 in annual income and is leased to an international operator with more than 1000 centres globally.
Also in Victoria, Eden Academy Thomastown offers a 15-year net lease with options extending to 2060, supported by fixed annual rent increases of three per cent.
Other assets include Goodstart Early Learning centres at 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 Adam Thomas said the campaign highlighted the range of investment opportunities available across 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,” Thomas said.
Childcare property has emerged as one of Australia’s most sought-after alternative asset classes, underpinned by strong tenant demand, long-term leases and continued growth in early education services.
