 Asset Class: | Child Care |
 Price: | $ 4925000 |
 Net Yield: | 7.31 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
This premium childcare investment in Forrestfield, WA, offers a rare combination of strong cash flow and future growth potential. Secured by a long-term lease with Kids Academy, a well-established WA operator, this purpose-built centre provides an impressive <b>7.31% net yield</b>, set to increase to <b>7.53% by December 2025</b>. Spanning <b>3,769sqm</b> of land with <b>872sqm</b> of modern facilities, the property includes two high-quality buildings licensed for <b>184 places</b> across long day care (84 places) and outside school hours care (100 places). Extensive recent upgrades, ample parking, and a prime location of high percentage of young couples and multiple local schools make this a standout metro childcare investment. With strong rental upside of circa $650,000 and comprehensive tenant outgoings coverage, this asset presents exceptional long-term value.
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Forrestfield, WA, is a growing suburb in Perth’s southeastern corridor, known for its mix of residential, commercial, and industrial development. Located approximately 22mins from Perth’s CBD, Forrestfield benefits from strong transport links, including Tonkin Highway and Armadale Road, providing easy access to key business hubs. The area has experienced steady growth due to its strategic location within the City of Armadale, a region recognized for its economic expansion and investment potential.<br><br>The suburb’s commercial and industrial sectors are thriving, supported by the Forrestfield Business Park, which attracts logistics, manufacturing, and warehousing businesses. This business-friendly environment, combined with Perth’s ongoing infrastructure projects, makes Forrestfield a key area for investment. The local population is increasing, driven by new residential developments in nearby suburbs, further supporting economic activity and strengthening childcares in the neighbourhood.<br><br>Western Australia’s economy remains one of the strongest in the country, fuelled by mining, infrastructure investment, and population growth. Forrestfield is well-positioned within this economic landscape, making it an attractive option for investors seeking stable and high-yielding commercial properties.
Additional Location Information File<span style="color:rgb(36, 36, 36);"><b>Kids Academy ELC & Outside School Hours Care </b></span><br><br><span style="color:rgb(51, 51, 51);">Kids Academy Early Learning Centre (ELC) & Outside School Hours Care (OSHC) is a childcare provider in Western Australia, offering services for children from 6 weeks to 12 years old. Their programs include Long Day Care, Before and After School Care, and Vacation Care. It has received positive feedback from families, with an average rating of 5.0 based on 19 reviews.</span><br><br>Kids Academy Early Learning Centre (ELC) & Outside School Hours Care (OSHC) is part of the Affinity Education Group, a prominent provider of early childhood education in Australia. Affinity Education encompasses over 200 centres nationwide, employing more than 3,000 educators.<br><br>Within this network, Kids Academy operates multiple centres across Western Australia, including locations in Balga, Rivervale, Forrestfield, and Madeley. Additionally, Kids Academy has a significant presence in New South Wales, with centres throughout Sydney, Western Sydney, the Northern Beaches, the Central Coast, and beyond.<br><br>As a member of the Affinity Education community, Kids Academy benefits from shared resources, professional development opportunities, and a commitment to delivering high-quality early learning experiences across all its centres.<br><br><br><a style="color:rgb(36, 36, 36);display:inline;" target="_blank" href="https://www.kids-academy.com.au/"><u>https://www.kids-academy.com.au/</u></a><span style="color:rgb(36, 36, 36);"></span><br>
Initial Term:
Security:
6mth bank guarantee
Security Info:
6mth bank guarantee
All outgoings are covered by the tenant including PM fees and land tax.
Additional Financial Information FileInitial Term:
Security:
6mth bank guarantee
Security Info:
6mth bank guarantee
17A Anderson Road Forrestfield - 183 places - $1,956/place average: (Note rent apportioned at $2,800/head for the LDC and $1,250/head for the OSHC) 386 Morrison Road, Swan View - 70 places - $3,000/place KinderPark Ellenbrook - 80 places - $3,161/place 130 Wittenoom Road High Wycombe - 78 places - $3,094/place
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Asking Price: $5,500,000<br>Negotiated Price: $4,925,000<br>Net Yield: 7.31%<br><br><span style="color:rgb(51, 51, 51);">Land Area: 3,769sqm</span><br><br><span style="color:rgb(51, 51, 51);">Floor Area: 872sqm </span><br><br><span style="color:rgb(51, 51, 51);">Single level purpose built centre which has been upgraded several times since original construction</span><br><br><span style="color:rgb(51, 51, 51);">Due to the negotiations this will be one of the highest yielding metro childcares in the country at 7.31% net! (and 7.53% net by December 2025)</span><br><br><span style="color:rgb(51, 51, 51);">Modernised reception, staff room and classrooms</span><br><br><span style="color:rgb(51, 51, 51);">Ample parking of circa 30 spaces on title</span><br><br><span style="color:rgb(51, 51, 51);">Upgraded outdoor yard and modern landscaping equipment</span><br><br><span style="color:rgb(51, 51, 51);">Property is a kids oasis including bike tracks, forts, sandpit areas and climbing frames. </span><br><br><span style="color:rgb(51, 51, 51);">Vast areas are provided with shade sails to ensure maximum sun protection for the children.</span><br><br><span style="color:rgb(51, 51, 51);">Trades from two separate freestanding, high quality purpose built buildings</span><br><br><span style="color:rgb(51, 51, 51);">Situated within close proximity to Hawaiian's Forrestfield Shopping Centre and easily accessible from a number of location primary schools</span><br><br><span style="color:rgb(51, 51, 51);">The suburb is spoilt for choice with an abundance of amenity, local schools, public transport links and parkland ensuring a family rich environment</span><br><br><span style="color:rgb(51, 51, 51);">Circa 11 local schools in a 3km distance from the property</span><br><br><span style="color:rgb(51, 51, 51);">Nearly half of the households within Forrestfield comprise of Couple Family with Children</span><br><br>Lease commenced 11 December 2023 for a period of 10 years + 5 years + 5 years + 5 years (with a 6 month bank guarantee)<br><br>Rent reviews annually to fixed 3.0% (market rent reviews at each option period and a ratchet clause applies)<br><br>All normal outgoings including land tax and management fees are recoverable from the tenant<br><br>Kids Academy are a high quality WA based operator who currently have 10 childcare and outside school hours care businesses across Metropolitan Perth<br><br><span style="color:rgb(51, 51, 51);">Licensed for 184 places broken into two </span><span style="color:rgb(51, 63, 72);">licenses. Licensed for 83 places (long day care) (566sqm) & Licensed for 100 places (outside school hours care) (306sqm)</span><br><br><span style="color:rgb(51, 51, 51);">Trades from 2 separate buildings on the same title, one for the LDC the other for the OSHC</span><br><br><span style="color:rgb(51, 51, 51);">Property forms part of a 2 lot survey strata – there’s no body corporate, strata fees etc. Freehold in nature but technically a strata due to the subdivision</span><br><br><span style="color:rgb(51, 51, 51);">LDC underwent circa $620k of upgrades and renovations in 2022</span><br><br>Under rented by circa $250/place equating to $45,750pa rental increase and at 7%, capital appreciation of $650,000 of uplift<br><br>
