Childcare | $9,780,000 | 6.2% Net Yield | On Market

Strategic Melbourne Childcare Investment – Long-Term Lease to ASX-Listed Operator‍

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Positioned just 22 minutes from Melbourne’s CBD, this rare sub-$10 million childcare investment represents exceptional value in a tightly held metro market. Occupying a prominent corner site of approximately 2,598 sqm with 140m of street frontage (all subject to confirmation during due diligence), the freehold property is fully approved for 120 child placements and includes 22 on-site car bays.
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Securely leased to Mayfield Childcare Limited, a nationally recognised, ASX-listed operator with 45 centres across VIC, QLD and SA, the asset offers a substantial 35-year lease term to 2055, with an additional 10-year option extending to 2065. Rental increases are fixed at 2.5% per annum, and the tenant covers all outgoings, including land tax, property management, and capital expenditures.
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This asset is underpinned by significant lease security, including a bank guarantee equivalent to six months’ rent. Recent upgrades by the vendor offer attractive depreciation benefits, estimated at $89,323 in the first year, which when combined with the $606,601 net income, delivers an effective year-one return of approximately 7.12%.