Two ‘Young Academic’ Childcare Investments Hit the Market Following Private Equity Backing

Two newly constructed childcare centres in Leumeah and Dapto NSW, both leased to Young Academics, have been bought to market following a recent cash injection by a US private equity firm.

California-based Seidler Equity Partners have acquired a strategic minority stake in the Sydney-based group, in a deal that valued the Young Academics business at over $200 million. The acquisition bolsters the investment appeal of the Young Academics Leumeah and Young Academics Dapto childcare assets, recently bought to market by Stonebridge Property Group.

Childcare investments continue to be a sought-after asset class for their essential and resilient nature. Both Leumeah and Dapto offer a highly passive and secure investment backed by brand new 15 year net leases, plus options, and new improvements which provide excellent depreciation benefits.

Young Academic’s Leumeah centre, in NSW’s rapidly growing south-west corridor, benefits from a strategic position neighbouring a large primary school, hosting more than 490 students. Further south, a newly built asset in Dapto, Wollongong’s primary residential growth area, features a unique rooftop playscape which cements its place as the most impressive centre in the catchment.

Stonebridge Executive, Brett O’Neill, comments “Each centre possesses the high-quality fundamentals for which childcare has become renowned; large landholdings in high growth locations, compounding annual income growth and a long term, government-backed income stream leased to a dominant operator, with strong occupancy metrics across their network”.

Tom Moreland, Stonebridge Partner, added “The outlook for childcare is exceptionally strong, with a record $14.5B invested into the sector over the past year alone. This surge in funding has fuelled significant growth, with daily fees rising an average 21.08% between September 2020 and December 2023. The persistent supply-demand imbalance – combined with providers’ ability to command higher fees – has translated into meaningful gains for investors, reflected in rising rental rates and uplifted capital values”.

Fortunately for investors, the early education sector shows no sign of slowing down, as the federal government eyes the prospect of universal childcare and impending rate cuts has only propelled demand for childcare-leased assets.

Stonebridge Property Group continue to strengthen their track record and market dominance in the childcare sector across the Eastern Seaboard, recording 21 childcare transactions to date for 2025, encompassing over $122,000,000 in value. The group holds considerable experience marketing Young Academics investments, with two successful campaigns in Woodcroft and Box Hill across the past 12 months.

Both assets are being offered for sale via Expressions of Interest, Young Academics Leumeah will close Monday 30^th June and Young Academics Dapto will close Monday 10^th July.