 Asset Class: | Child Care |
 Price: | $ 3850000 |
 Net Yield: | 6.43 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
This prime childcare investment, located at <span style="font-weight:normal;">23 Railway Parade, Mount Lawley, WA 6050</span>, offers a discounted price of $3,850,000 with an asking price of $4,200,000, providing immediate uplift through a March rent increase delivering a <b>6.62%</b> net yield. Situated on a 989 sqm land area just 3km north of Perth CBD, the property boasts strong underlying land value and a highly desirable inner-city location. Licensed for 71 places, it is leased to Lex Education Group, an established WA company operating 14+ centres. The tenant's confidence in the property is evident, with a new 10-year lease in place and a recent $110k renovation investment by the tenant.
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Mount Lawley, located just 3km northeast of Perth's CBD, is one of Western Australia's most vibrant and desirable suburbs. Known for its eclectic charm and heritage architecture, this area offers a mix of tree-lined streets, character-filled homes, and a bustling urban scene. Beaufort Street, the suburb’s main thoroughfare, is a hub for dining, shopping, and entertainment, featuring boutique stores, cafes, and bars that attract locals and visitors alike.<br><br>Mount Lawley is home to a diverse and growing population, with professionals, families, and students contributing to its dynamic community. Its proximity to Perth's central business district makes it an ideal location for those seeking a balance between work and leisure. This demand is reflected in a steady population growth and an increasingly competitive rental market, with low vacancy rates highlighting the suburb's strong appeal.<br><br>Economically, Mount Lawley benefits from its central location and thriving local businesses. It is well-serviced by public transport and has a strong cultural presence, with landmarks like the Astor Theatre adding to its unique character. The commercial property market in the area has shown resilience, supported by consistent demand for retail and office spaces in this sought-after suburb.<br><br>Western Australia’s overall economic strength further supports Mount Lawley’s appeal. The state’s robust performance in sectors like mining, agriculture, and technology continues to drive population growth and investment, ensuring suburbs like Mount Lawley remain prime locations for living and business opportunities.
Additional Location Information File<b>Lex Education</b><br><br>Lex Education is a family-owned early childhood education group based in Perth, Australia. The organization emphasizes creating safe, supportive, and child-led learning environments. Their mission is to empower children to explore, play, and learn in unique ways while fostering collaboration with families and communities. By nurturing individuality and inclusivity, Lex Education aims to build a solid foundation for lifelong learning.<br><br>The company operates on a set of core values, including <b>integrity and inclusion</b>, <b>simplicity</b>, and being <b>planet-positive</b>, ensuring their actions align with the best interests of children while promoting sustainability. Their approach emphasizes teamwork and leading by example, which extends to all levels of the organization. These principles reflect a commitment to creating meaningful educational experiences and maintaining a down-to-earth operational style.<br><br>For more details, visit their <a style="color:rgb(44, 123, 208);display:inline;" target="_blank" href="http://lexeducation.com.au/"><u>official website</u></a>.
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23 Railway Parade, Mt Lawley - 71 places - $3,487/place Tall Trees, Lvl 2, 636 Newcastle St, Leederville - 92 places - $3,600/place Nido Kingsley - 78 places - $4,050/place Kinder Park Ellenbrook - 80 places - $3,161/place
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Discounted Price: $3,850,000<br>Asking Price: $4,200,000<br><br>Immediate uplift with a March increase generating a 6.62% net yield!<br><br><span style="color:rgb(51, 51, 51);">Land Area: 989 square metres </span><br><br><span style="color:rgb(51, 51, 51);">Licensed for 71 places </span><br><br>Established tenant - tenant has been in business for over a decade with multiple centres across Perth<br><br><span style="color:rgb(51, 51, 51);">Tenant is Lex Education Group (private WA company with 14+ centres trading under multiple brands) </span><br><br>Signing a new 10 year lease shows confidence by the tenant in the property and location<br><br>Tenant recently spending $110k on renovation signalling their commitment to the space<br><br><span style="color:rgb(51, 51, 51);">Prime inner city location, with strong underlying land value, situated 3 km north of the Perth CBD.</span><br><br><span style="color:rgb(51, 51, 51);">Rent reviews annually to fixed 3.0%, market rent reviews each 5 years and a ratchet clause applies</span><br><br><span style="color:rgb(51, 51, 51);">All normal outgoings including land tax and management fees are recoverable from the tenant </span><br><br><span style="color:rgb(0, 0, 0);">Vacancy - 70-80% filled childcare (Quite high as this has been during the renovation downstairs and expected to increase as</span><span style="color:rgb(0, 0, 0);padding-left:5.4pt;">2025 begins)</span><br>
