Childcare Investment
Purpose-built childcare centres with long net leases offering stable, inflation-linked returns
Market Overview
The Australian childcare sector continues to show strong fundamentals with government support and growing demand
Market Size
Annual childcare market value in Australia
Growth Rate
Annual market growth rate
Occupancy
Average occupancy rates nationally
Lease Terms
Typical net lease duration
Investment Benefits
Childcare investments offer unique advantages for investors seeking stable, long-term returns
Stable Income Stream
Long-term net leases with national childcare operators provide predictable, inflation-linked income.
Government Support
Childcare Subsidy system provides government backing and stability to the sector.
Essential Service
Childcare is an essential service with consistent demand regardless of economic cycles.
Minimal Management
Net lease structure means tenant handles all operational responsibilities and costs.
Market Drivers
Growing Population
Australia's population growth and increasing birth rates drive demand for quality childcare services.
Workforce Participation
Increasing female workforce participation creates sustained demand for childcare services.
Government Funding
Childcare Subsidy provides up to 85% fee support, ensuring affordability and demand stability.
Supply Constraints
Limited supply of quality centres in growth areas creates opportunities for new developments.
Key Investment Considerations
Important factors to evaluate when considering childcare centre investments
Location Analysis
- Population growth and demographics
- New housing developments
- Transport accessibility
- Competition analysis
Operator Quality
- Financial strength of tenant
- Track record and reputation
- Lease covenant strength
- Expansion plans
Property Features
- Purpose-built design
- Outdoor play areas
- Parking availability
- Future expansion potential
Financial Structure
- Rental escalations
- Lease break options
- Maintenance responsibilities
- Insurance arrangements
Financial Structure
Net Lease Model
Tenant responsible for all operating costs including rates, insurance, maintenance, and utilities.
Rental Escalations
Annual rent increases typically linked to CPI or fixed at 2.5-3.5% per annum.
Lease Security
Bank guarantees or personal guarantees from operators provide additional security.
Exit Strategies
Strong resale market with institutional investors and owner-operators seeking quality assets.
Current Opportunities
Explore our current childcare investment opportunities
Huntly Childcare Centre
101 places • Bendigo Region, VIC • Modular construction
Little Kindy Tatura
92 places • Tatura, VIC • Conventional construction
Interested in Childcare Investment?
Speak with our specialists to explore childcare investment opportunities that match your goals