17 Alexander Street, McCracken
Investors continue to pursue childcare centre investment opportunities in growth areas, with an interstate purchaser acquiring a childcare facility in the Victor Harbor town of McCracken for $3.3 million.
McGees Property’s Igor Jaric, Yee Ng and Michael Dimasi negotiated the off-market sale of 17 Alexander Street, McCracken.
The property has a secure 10-year lease to one of Australia’s largest ASX-listed early childhood and care providers, G8 Education, and traded on a 5.75% yield.
“Strong demand is evident in the childcare centre investment space, with buyer appetite contingent on the quantum price point and quality of the lessee’s covenant,” Dimasi said.
“In this case, price point was at an attractive level for investors, and the covenant being a publicly listed entity in G8 Education was a major investment drawcard.”
He said yields in the childcare sector are expected to tighten throughout 2025 on the back of growing investor confidence and potentially further interest rate cuts.
Ng said buyers are making purchases of childcare centre assets located in growing areas as an investment and land bank play, securing a long-term income stream underpinned by increasing demand for services while enjoying value appreciation.
He said the Victor Harbor region is attracting a growing number residents drawn to the coastal lifestyle and the expanding hospitality and lifestyle amenity, and high- quality schools and health facilities, in a location that benefits from ease of access to metropolitan Adelaide.
“The City of Victor Harbor is one of the state’s fastest-growing areas, with forecast population growth of 8,000 people over the next 25 years. That will put upwards pressure on demand for childcare services and facilities.”
Jaric said major infrastructure projects improving connectivity to the region, including the $810 million Fleurieu Connector, Southern Expressway and $15.4 billion
Torrens to Darlington motorway, are further driving growth of regional areas such as Victor Harbor at a time of widespread adoption of flexible working arrangements.
“Being just under an hour’s drive from Adelaide, the Fleurieu Peninsula is an appealing location for people to live and work, and have a balance between urban access and tranquil environment.”
For further information about this deal, or to discuss your personal property matters, feel free to reach out to McGees Property Adelaide.
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