Generational Sydney Childcare Centre Leased To Global Education Leader Poised To Be The Biggest Sale For The Sector In 2024

Australia – July 5, 2024 – Just months after the sales announcement of a $17,500,000 childcare centre in Brighton Victoria for circa 5%, another trophy early learning investment is poised to hit the market with pricing expectations set to make it the largest transaction in the sector for 2024.

15-19 Parraween Street, Cremorne is set to hit the Australian investment market in a matter of days and will be sold via International Expressions of Interest closing in early August. The subject property is leased to Only About Children (OAC) – a premium education brand synonymous with success and owned by US-based Bright Horizons, who are one of the largest providers of education services in the world. Only About Children currently operate 80 centres across NSW,VIC and QLD. The company, which was previously owned by Bain Capital was sold to US based Bright Horizons in 2022 for circa $450,000,000 who as of today operate over 1,000 centres globally.

The property which has a passing income of $866,826* features a 25-year initial lease term with two (2) further ten (10) year options alongside fixed 3% increases. Land Tax is not applicable for childcare centre offerings in NSW. The agency team handling the transaction believe the offering features one of the greatest underlying land values ever associated with a childcare centre transaction.

CBRE’s Sandro Peluso, Marcello Caspani-Muto, Toby Silk and Jimmy Tat are handling the sales campaign following the success of multiple trophy childcare centre sales between $10,000,000 – $21,000,000 over the past 12 months.

Marcello Caspani-Muto said “While our team have seen record breaking levels of premium centres marketed and successfully transacted nationally over the past 18 months, a trophy early learning offering in NSW of this kind is extremely rare and as such we have seen minimal notable results here for a period of time. This has been driven by higher land costs and a limited availability of sizeable land parcels within metro Sydney. Greater levels of generational wealth across the state also mean when private families or institutional buyers acquire long-term investment grade stock they are seldom re-sold and rather held across multiple generations.

An asset with such long-term passive income, substantial underlying land value and multiple repositioning or development options (property is zoned Mixed Use) within metro Sydney is rarely offered and we expect a high level of interest from private investors, families and syndicates both locally and internationally for this reason.”

Jimmy Tat added “There has been an equal share of domestic to off-shore buyers across the last 18-months. Off-shore groups have shown an increased appetite for high-quality childcare assets across this period, reflected in increased bidder depth and sale prices. We expect to see a high level of interest from Asian-based investors given the investment attributes of 15-19 Parraween Street, Cremorne, offering a long-term lease to a high-quality national tenant, freehold title and no heritage limitations.”

More about Bright Horizons

Bright Horizons Childcare & Education, established in 1986, has grown to become a leading global provider of early education and childcare services. With a presence in the United States, the United Kingdom, the Netherlands, India, and Australia, the organization operates over 1,000 centers worldwide, offering a range of programs for infants, toddlers, preschoolers, and kindergarten prep children.

CBRE’s Recent Trophy Childcare Centre Sales Results