CHILDCARE INVESTMENT

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Are you looking for a ‘safe haven’ investment opportunity with circa 6% net rental yields?

Childcare assets now rank amongst the most sought-after commercial investments in Australia, proving to be one of the strongest passive-income assets in an investment portfolio today. This is due to growing demand, long term triple net lease structures and continued Government subsidy providing certainty and security, while the asset appreciates in value. 

 

Now would be a great time to consider investing.

WHY INVEST IN CHILDCARE?

Childcare is an asset with a high on-sale appeal to investors. The childcare sector has been the fastest growing commercial real estate investment class in recent years. Providing investors a long-term, low risk investment with consistent, reliable income and capital growth potential that will deliver significant returns over time.

Driven by changing social needs which has led to; increased supply, high investor demand and ongoing Government funding. Demographic drivers include; significant growth in the number of children aged 0-4, a rising number of females returning to the workforce, an increase in the number of two-working-parent families and with the current trend of dual family incomes increasing, it is expected to further raise childcare demand for many years.

KEY FACTORS THAT MAKE CHILDCARE AN ASTUTE INVESTMENT:

  • Growing long-term demand

  • Strongly supported by Government Funding (child care subsidy up to 85%)

  • Secure net income yields circa 6.0% in prime locations

  • Backed by high-quality tenants

  • Long term leases of 15 years + options

  • Triple net lease structures

  • More profitable than many other forms of investment

  • Properties rarely vacant compared to other classes of commercial property assets

​WHY IS MOLLARD A PREFERRED PARTNER?

Securing a high-quality tenant prior to property commitment is key to the success of property investment. A committed tenant and obtaining Council approval are key milestones in the development process. ​Sites sourced and presented by Mollard Property Group will be in demand-driven locations, based on childcare operator requirements and mandates. ​

The design, development and construction of compliant childcare centres is complex. Our childcare centre development team offers a

one stop solution to facilitate the site location, traffic and access, catchment area identification, demographic analysis and a detailed assessment of town planning risks and construction costs to determine if a site is suitable for childcare development. Our analysis leads to strategic childcare centre design, balancing the childcare operator’s business requirements and community needs.

LEASE AND DE-RISK STRATEGY

As Childcare development specialists, understanding the risks, and how to mitigate it throughout the entire childcare centre development process is critical. Mollard Property Group have been engaged by quality and experienced childcare operators seeking prime locations in Melbourne, Brisbane, Gold Coast, Sunshine Coast, Sydney and Tasmania for turnkey lease opportunities.

No two childcare operators are the same; each having unique design, location and operational mandate requirements. Our childcare centre development team facilitate each operators unique criteria and provide targeted lease opportunities. Pre-committed tenants will be secured via an Agreement for Lease prior to the property acquisition going unconditional. The calibre of the tenant has a direct impact on the value of a childcare asset investment therefore Mollard Property Group only selects tenants that meet the strictest criteria to ensure all financial and leasing objectives can be met.

BUY ON COMPLETION

Mollard Property Group also offer investors a more conservative avenue which provides excellent returns without the hassle of development. Investors can enter into an agreement with a Developer to purchase the childcare centre on completion off-market. As the Developer is able to reduce sales and marketing costs and risks, lower profit margins are required - passing on the savings to the investors. This can be achieved via variable arrangements, for example; a Development Agreement or land and build arrangement, similar to a house and land package in the residential market.

 

We are trusted members of the Australian Childcare Alliance and trusted specialists in childcare centre development,

with over 80 years of combined experience and over 27 projects. We are dedicated to providing

outstanding childcare development and investment services.

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