 Asset Class: | Child Care |
 Price: | $ 2860000 |
 Net Yield: | 5.79 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
Offered at a negotiated price of $2,860,000 with a strong 5.79% net yield, this high-performing childcare investment is securely leased to ASX-listed Embark Education (EVO) on a triple net lease with 8 years remaining. Purpose-built and licensed for 67 long day care places, the centre is operated under the well-established Cubby Care brand and occupies a substantial 1,390 sqm landholding. Operating at a very high occupancy rate of circa 90%+ the property's rent is positioned well before market value which could add hundreds of thousands of dollars to the owner years down the track. Ideally positioned just 5.5 km from the Cairns CBD in the family-oriented suburb of Mooroobool, the asset benefits from proximity to seven schools, key transport links, and a growing population base, with over 20% of households made up of young families. With annual rent increases, full outgoing recoverability, and long-term lease security, this investment offers strong fundamentals and essential service backing in one of Queensland’s most robust regional markets.
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
Mooroobool is a well-established residential suburb located just 5.5 km west of the Cairns CBD in Far North Queensland. With a strong family demographic, accessible amenities, and proximity to key employment hubs, it is highly suited to early learning services. The suburb and surrounding areas are home to at least seven primary and secondary schools, including Balaclava State School in Mooroobool, Trinity Bay State High School in nearby Manunda, and Woree State School to the south—supporting consistent weekday activity and enrolment potential for childcare centres.<br><br>Cairns’ is home to over 175,000 residents, whilst Mooroobool has a stable and growing population, with over 20% of households identified as young families. The suburb features a median age of 38, with 66% of homes owner-occupied—indicating long-term residential engagement. Families are drawn to the area for its affordability, strong transport connections, and easy access to retail centres and public amenities. Childcare demand is reinforced by low residential vacancy rates in the broader Cairns region, and a steady local birth rate across the LGA.<br><br>As part of the high-growth Cairns catchment, Mooroobool benefits from Queensland’s leading population growth, strong migration inflows, and infrastructure investment. With long-term economic fundamentals and a growing young family base, the suburb offers a secure foundation for childcare assets backed by essential service demand and demographic alignment.
Additional Location Information File<b>Embark Education – Company Profile</b><br><br><b>Overview</b><br><br>Founded in 2014, <b>Embark Education (ASX: EVO)</b> is a leading Australian provider of early childhood education and care services. Headquartered in Helensvale, Queensland, the company operates a network of early learning centres under various brands, including Roseberry House, Brighthouse, Cubby Care, HAVEN Early Learning, Kitiwah Place, Little Zebra, Carlton House, Moreton Drive Early Learning Centre, and Youngstars .<br><br><b>Mission</b><br><br>To deliver high-quality, community-focused early childhood education that empowers centres to operate autonomously while receiving dedicated support.<br><br><b>Vision</b><br><br>To be Australia's most trusted early education provider, fostering environments where children thrive and educators are empowered.<br><br><b>Core Values</b><br><br>- Community Engagement: Building strong relationships with families and local communities.<br><br>- Empowerment: Providing centres with the autonomy to tailor their services to local needs.<br><br>- Excellence: Commitment to high standards in early childhood education.<br><br><b>Operations</b><br><br>As of March, 2025, Embark Education operated <b>38 early learning centres</b> across Australia . The company resumed its long-term acquisition strategy in 2024, settling one new acquisition in March and expecting additional acquisitions in the following months.<br><br><b>Financial Highlights</b><br><br>- Revenue: AUD 17.7 million in 2023, with an increase to <b>AUD 23.0 million</b> in 2024<br><br>- Market Capitalization: Approximately <b>AUD 82.7 million</b> as of April 3, 2025<br><br>- Employees: Approximately<b> 1,200</b><br><br><b>Leadership</b><br><br>- Managing Director: Christopher John Scott<br><br>- Chief Financial Officer: Josie Shawcross<br><br>- Chief Operating Officer: Gregory Scott<br><br><br>Website: <a style="display:inline;" target="_blank" href="http://embarkeducation.com.au/"><u>embarkeducation.com.au</u></a>
Initial Term:
Security:
Security Info:
Per place comparables: Subject Property - 100 Callum Street Mooroobool - 67 places - $2,473/place 235 Kamerunga Road, Freshwater - 42 places - $2,889/place 160-162 Hoare Street, Manunda - 68 places - $2,638/place 7-11 Cairns Road, Gordonvale (small town outside of Cairns) - 75 places - $3,713/place 21 - 23 Fisher Road, Gordonvale - 81 places - $2,971/place 1 Cooks Road Urraween (Hervey Bay) QLD - 95 places - $3,330/place (newer build) Childcare Sale Comparables: Subject Property - 100 Callum Street Mooroobool - 74 places - $2,900,000 - 5.71% net yield 7-11 Cairns Road, Gordonvale (small town outside of Cairns) - 75 places - $4,775,000 - 5.5% net yield
Offer To Purchase:
$
Initial Deposit:
$
Due Diligence:
days
Finance:
days
Settlement:
days
Asking Price: $3,300,000<br>Negotiated Price: $2,860,000 (Huge discount)<br>Net Yield: 5.79% (circa 6% after first rent increase)<br><br><b>Investment Highlights</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>ASX listed tenant </b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">(rare for sub $3m asset)</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Triple net lease</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> (All outgoings covered by tenant including structural - minimising any risks)</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Long lease</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> remaining of 8 years </span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Very high occupancy rate of 90%</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> (the only spaces that are free are so the centre can juggle kids on certain days otherwise running at full capacity)</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Under rented </b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">by circa $400 per place. Whilst not immediate, this will bring a future uplift to the property ($400 x 67pp = $26,800pa or </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>over $460,000 value add at a 5.8% cap rate</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">) The immediate benefit is the tenant will favour this property over any others for years to come making this an even more secure asset.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Market</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> is ideal timing for an investment, with 3 - 5 expected interest rate cuts to come this year, safe, clean assets like this will tighten in the market. At 5.5% cap rate this property would increase in value by $150,000 which could be taken advantaged of from equity draw downs.</span></p></li></ul><br><br><b>Property Description</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Purpose-built facility licensed for </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>67 long day care (LDC) places</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Well-established childcare operator</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> trading under the </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Cubby Care brand</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located on a </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>large 1,390 sqm landholding</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, providing long-term strategic value.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Flood Free</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> - the property has never flooded and has great drainage due to the waterway next door.</span></p></li></ul><br><br><b>Location</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located just </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>5.5 km from Cairns CBD</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> in a highly accessible, family-oriented area.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Surrounded by seven schools</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> in Mooroobool and nearby suburbs, supporting childcare demand.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Over </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>20% of households are young families</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, aligning with childcare service demand.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Situated in </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Mooroobool</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, an established suburb with long-term residential stability.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Strategic location near convenience retail</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, public transport, and major arterial roads.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Cairns is the gateway to Far North Queensland</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, with a population of over </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>175,400</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Cairns is </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Australia’s 5th largest regional city</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, benefitting from steady growth and infrastructure investment.</span></p></li></ul><br><br><b>Lease Details</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Leased to </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Embark Education (ASX: EVO)</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> – a listed early education provider with </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>38 centres across QLD and VIC</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>17-year net lease to 2033</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">, with </span><span style="color:rgb(51, 51, 51);font-style:normal;"><b>2 x 5-year options</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> extending to 2043.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:
