A childcare investment at 112 Balmain Road, Leichhardt has sold for $5.775 million reflecting a net yield of 4.98% and highlighting ongoing investor demand for tightly held metropolitan childcare assets underpinned by long-term income security and strong demographic fundamentals.
CBRE’s Michael Vanstone and Yosh Mendis handled the sale.
The campaign attracted strong interest from investors seeking exposure to the childcare sector, drawn by the combination of a secure long-term income profile, favourable lease terms and the property’s strategic location within one of Inner Sydney’s most established family-oriented suburbs.
Mr Vanstone said the result highlights the continued depth of capital targeting quality childcare investments in metropolitan markets, particularly assets offering long-term income security and strong underlying land value.
“Investors remain highly attracted to opportunities where the fundamentals are supported by both proven tenant demand and favourable local demographics,” he said.
Mr Mendis said astute investors understand that supply constraints often underpin long-term value.
“This growing scarcity is driving demand for quality childcare assets with long leases and strong operators, and we expect tightly held investments to remain highly sought after as rising land and construction costs make replacement opportunities harder to replicate.”
The property occupies a prominent 755sqm corner landholding in Sydney’s Inner West and comprises a 48-place childcare centre secured by a newly commenced 10-year net lease, with options extending the tenure through to 2056. The investment generates a net income of $288,000 per annum and benefits from fixed 3% annual rental increases.
Located just six kilometres from the Sydney CBD, the property sits within a well-established education catchment featuring 25 schools and more than 10,900 school-aged enrolments within a five-minute drive. The surrounding area also benefits from an above-average proportion of young families, reinforcing long-term demand for childcare services.
The result underscores the sustained investor appetite for childcare investments across Australia’s major metropolitan markets, particularly assets offering secure income streams, built-in rental growth and strategic infill locations.
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