Fully leased Adelaide centre offers secure income as childcare transactions surge nationally
Investors seeking exposure to one of Australia’s most resilient asset classes have the opportunity to acquire a fully leased inner-east Adelaide childcare centre.
JLL’s Claudia Brace, Tom Love and Mark Stafford have been appointed to sell 51-53 Henry Street, Stepney, a purpose-built 134-place centre leased to South Australian operator Treetops Early Learning. The tenant recently exercised a five-year renewal, with options extending to 2065.
The asset generates a current net income of $519,967 per annum with fixed 4 per cent annual increases, underpinned by a substantial 3,207sqm landholding. Located 4.5km from the Adelaide CBD, the property is surrounded by 10 primary schools with over 4,000 students within 1.5 kilometres.
According to JLL’s Child Care Market Update, more than $305 million in childcare assets transacted nationally in the first half of 2025, a 27.9 per cent uplift on the prior year, with volumes tracking toward one of the strongest years on record.
Ms Brace said the sector’s momentum shows how much it has changed in recent years.
“Childcare has really moved from being a niche investment to being viewed as essential social infrastructure. It’s backed by government funding on both sides of politics and plays a critical role in helping families get back to work,” she said.
“We’re seeing buyers remain highly competitive, particularly for assets like this that provide attractive net lease structure, rental growth through fixed 4 per cent annual reviews, and underpinned by strong underlying land value. With the recently increases to construction costs and limited new supply, established centres like Treetops Early Learning at Stepney are only becoming more valuable.
“Henry Street is a modern, purpose-built centre with a strong operator in a highly affluent catchment, which gives investors a lot of security and positive rental growth. With zero stamp duty in South Australia, it makes the opportunity even more compelling when compared to other states.”
51-53 Henry Street, Stepney is for sale via Expressions of Interest closing Thursday 6 November at 4pm (ACDT).
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