A private investor has acquired a premium childcare investment in Sydney within a day of the campaign’s launch, securing the asset for $9,850,000 at a 4.72% yield, in a transaction that reinforces the depth of demand for well-located early learning assets.
The sale of the Bluebird Early Education freehold, located at 12–14 Preddy’s Road, Bexley, was negotiated by Tom Moreland, Michael Collins and Brett O’Neill of Stonebridge Property Group.
The result highlights continued investor confidence in childcare leased investments, underpinned by its classification as an essential service and favourable demographic tailwinds, including increasing workforce participation rates, plus bipartisan federal government support, such as the recent introduction of the ‘Three Day Guarantee’ subsidy.
The recently refurbished centre is situated on a 1,611 sqm landholding, improved by a 91-place long day care facility, positioned within a family-oriented suburb approximately 12 kilometres south of the Sydney CBD.
Underpinned by a brand new 15-year net lease to 2041, with options extending to 2071, the tenant is responsible for all usual outgoings and annual reviews to the greater of 3% or CPI. Commencing net rental income is $465,000 per annum + GST.
Bluebird Early Education, operated by Adrian Fonseca’s Oxanda Education, is a proven national childcare operator with a track record spanning 12+ years and a growing network of more than 20 centres across Australia.
Tom Moreland, Partner at Stonebridge Property Group, commented “This transaction demonstrates the ongoing appetite for premium childcare assets and willingness of savvy private investors to secure quality centres swiftly when they come to market. With limited supply for true metro Sydney offerings and increasing investor competition, quality centres continue to transact at firm yields in a timely fashion.”
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