Asian Capital Fuels Childcare Investment Surge as Stonebridge Secures Off-Market Sale in Point Cook
18 August 2025
Asian capital is continuing to shape Australia’s childcare investment market, with Stonebridge completing the off-market sale of Milestones Early Learning Point Cook for $5,700,000 on a 5.47% yield to a Victorian-based Hong Kong investor.
The transaction was facilitated by Stonebridge National Partners, Kevin Tong, Rorey James, Michael Collins and Tom Moreland. The Stonebridge Asia Practice team secured the buyer, who worked closely with the purchaser over several months, reviewing multiple opportunities before securing this asset.
“This transaction reinforces the sustained appetite from Asian capital for childcare investments, driven by the sector’s strong fundamentals and long-term resilience,” said Kevin Tong, Partner, Stonebridge Asia Practice. “Our team’s cross-border capability allows us to connect offshore capital with quality Australian opportunities, and childcare is increasingly high on the radar for many investors.”
The Point Cook centre was offered with a lease until 2033 (no further options) and annual CPI + 1.50% rent increases. Purpose-built in 2008 and licensed for 90 children, the asset benefitted from a scheduled rental increase at settlement, contributing to the sharper yield achieved.
This transaction follows a string of significant Victorian childcare sales completed by Stonebridge in 2025, including:
Property Sale Price Yield Sale Date Price per Place Bluebird Early Learning, Koo Wee Rup $5,035,000 5.89% Jul-25 $69,931 Community Kids Early Learning, Redan (Ballarat) $4,490,000 6.58%^ Jun-25 $40,089 Elles Belles Early Learning, Ormond $7,800,000 5.89% May-25 $82,979 Eden Academy, Maddingley $7,450,000 5.99% Mar-25 $67,727 Nino Early Learning Adventures, Ashburton $10,795,000 6.43% Feb-25 $80,560
^Sale reflected sub-25% occupancy
With the Australian childcare sector forecast to generate $22.3 billion in revenue in 2025 – underpinned by 6.7% annual growth over the past five years and more than $16 billion in anticipated government funding – investor interest in the sector remains strong.
“Childcare assets continue to attract capital due to their essential service nature, long-term income security, and proven stability,” said Rorey James, Partner, Stonebridge National Portfolio Sales. “In an environment where rising construction costs are pushing up replacement costs and constraining new supply, existing facilities like Milestones Point Cook are set to see heightened competition and further yield compression.”
The Stonebridge National Portfolio team will shortly be bringing several more childcare investments to market as part of their September National Portfolio. These will include a Little Kindy in Tatura and Believe Early Learning Eaglehawk. Both assets will be offered with brand new leases, major depreciation benefits and potential 50% stamp duty savings.
The Stonebridge National Portfolio Team is the leading freestanding investments sales team with over 30 years of combined experienced dedicated to blue chip retail, fast food, childcare, medical, fuel and convenience investments. With offices in Melbourne, Sydney, and Brisbane, the team has access to premium assets and a deep network of investors across Australia, having transacted 96 properties for a combined value of ~$650 million in FY2025 alone.