 Asset Class: | Child Care |
 Price: | $ 5843200 |
 Net Yield: | 6.25 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Exceptional Long-Term Security in White-Collar Beach Suburb</b><br><br>Presented below is an exceptional chance to secure a brand-new childcare facility, in fact the only facility in the entire suburb, situated on a substantial 1,383sqm freehold corner block. The strength of this high socio-demographic suburb is supported by 0% Public Housing and a median household income of 36% above state and 42% above national median incomes.<br><br>The property is constructed by Macri-Builders, a local builder with a reputation for high-quality. The seller, who is also the developer, operates a successful childcare business separate from their development activities. With plans to scale back the development side of their operations, the seller is now shifting focus to expanding and enhancing the childcare business.<br><br>This state-of-the-art property is leased to Ascolta Early Learning, a respected and well-established childcare provider with an impressive track record throughout the Perth metropolitan area. The lease is set to commence at the end of January 2025 and features an initial 20-year term, complemented by 2 x 10-year renewal options, offering long-term income security for savvy investors.<br><br>Ascolta Early Learning currently operates five thriving centers across Perth and is set to launch two additional facilities in 2025, including this one, reflecting their continued growth and success in the childcare sector. This investment opportunity blends an exceptional location, superior build quality, and a proven tenant with strong industry credentials. It presents a rare chance to secure a stable, high-demand asset for your investment portfolio.<br><br><span style="background-color:rgb(255, 255, 0);"><i>Note: there is a 3-months rent free period from commencement of the lease (1-Feb 2025) and settlement will occur on or after expiry of that rent-free period.</i></span><br><br><b>What We Like About This Asset</b><br><br>This sector is strongly supported by the government, which has recognized that for every dollar spent on childcare, there is a $2 return. Notably, childcare was one of the first asset classes to receive subsidies during the Covid-19 pandemic.<br><br><br>- Only childcare center in this suburb > very high demand for childcare services <br>- Attractive starting net yield at 6.25% in prime beach suburb<br>- 100% of outgoings incl mng and taxes recoverable<br>- Set and forget investment with long lease (20 years + 2x 10-years)<br>- Attractive built-in annual increases at 3%<br>- Brand new, quality-built facility > significant depreciation benefits<br>- Affluent, high socio-demographic suburb (0% Public Housing in the area)<br>- Median household income 36% above the state & 42% above national median income<br>- Experienced operator with 5 centers in WA
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<b>Family Desirability & Socio-Demographic Profile</b><br><br>Sorrento is a highly desirable suburb for families, known for its safe, family-friendly environment and coastal charm. The suburb offers excellent schools, spacious parks, and easy access to pristine beaches, making it ideal for raising children. With a typical household size of 2.6 people, it reflects a mix of families and professionals. Sorrento’s community atmosphere, local amenities, and relaxed lifestyle appeal to families seeking a high-quality suburban life. Its popularity is further supported by its proximity to major shopping centers, recreational facilities, and transport links, ensuring convenience while maintaining a peaceful residential vibe.<br><br>According to the 2021 Census data, Sorrento, Western Australia, has a median weekly household income of $2,472. This figure is notably higher than both the state and national medians. In comparison, Western Australia's median weekly household income is $1,815, while Australia's median is $1,746.<br><br>This indicates that households in Sorrento earn, on average, approximately 36% more than the state median and about 42% more than the national median. Additionally, the average number of people per household in Sorrento is 2.7, which is slightly higher than the state average of 2.5. These figures suggest that Sorrento is a relatively affluent suburb with household incomes exceeding both state and national averages.<br><br><b>Population & Kids Ratio</b><br><br>According to the 2021 Census, Sorrento, Western Australia, has a total population of 7,795 residents. Of these, 326 are children aged 0 to 4 years. There are no other childcare centers currently in Sorrento, indicating very strong demand for this service. At 88 kids, this childcare center only caters for 27% of children living in the suburb.<br>
Additional Location Information File<b>ASCOLTA – early learning and care</b><br><br>Listening on a new level - We understand that listening isn’t just hearing a voice, responding, and moving on. Listening takes time, patience, observation, interpretation, and understanding. It’s complicated, with diverse languages, body language, and hidden cues people use to express themselves. In our daycare, we’re here to build relationships, be aware, embrace emotions, ask questions, respond to needs, and encourage vulnerability and courage. All through listening. That’s what makes Ascolta Early Learning and Care such a special place.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.ascoltaelc.com.au/our-story/"><u>https://www.ascoltaelc.com.au/our-story/</u></a><br>
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Under the leases all outgoings are 100% recoverable, including management fees and land tax.
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29 Seacrest Dr, Sorrento – 88 kids - $4,150/child (ASCOLTA) 135 Oeninsula Rd, Maylands – 112 kids - $3,989/child (NIDO) 122-124 Coolibah Dr, Greenwood – 83 kids - $3,685/child (ASCOLTA) 68 Readshaw Rd, Duncraig – 92 kids - $3,635/child 9ASCOLTA) 73 Kingsley Dr, Kingsley – 78 kids - $4,053/child (NIDO) 73 Stirling Hwy, Nedlands – 62 kids - $4,637/child (EARLY LEARNINGS)
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<b>Purchase Price:</b> $5,843,200 (negotiated)<br><b>Initial Asking Price:</b> $6M+<br><b>Market Status:</b> Off-Market<br><b>Net Rent:</b> $365,200pa + Outg + GST<br><b>Net Yield:</b> 6.25%<br><b>Number of Places:</b> 88<br><b>Rate per Child: </b>$4,150/child<br><b>100% Outgoings Recoverable:</b> Yes, including management fee and land tax on single ownership basis<br><b>Age of Asset:</b> Brand new (completion projected at end of January 2025)<br><b>Any Incentives in the Lease:</b> yes, 3-months rent free period (Settlement to take place for the expiration of the Rent free period – on or after 1-May 2025)<br><b>Are Seller & Tenant Related:</b> Yes, this is a lease-back. Seller is the developer.<br><b>Occupancy Rate:</b> Estimated opening of Late March/early April. Operator plans to ramp up to full occupancy over the first year.<br><b>Flood Zone:</b> No<br><b>Bushfire Zone: </b>No<br><b>Contamination: </b>No<br><br><b>Asset Composition: </b><br>• 1,383sqm Freehold<br>• 88 places<br>• 5 activity rooms with wet areas<br>• Enclosed outdoor area with play equipment<br>• 23 car bays (staff and drop-off)<br><br><b>Infrastructure Level: </b>Tier 1<br><br>Key Highlights:<br>• 1,383sqm Freehold corner block<br>• 88 places<br>• Built 2025 > strong depreciation benefits<br>• Purchase Price $5,843,200<br>• Net Rent $365,200pa + Outg + GST<br>• 100% of outgoings recoverable<br>• $4,150/child (considered fair market rent for this prime location; a higher land and building costs has driven that rate)<br>• Net Yield 6.25%<br>• Tenant: Ascolta Early Learning and Care Pty Ltd > <a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.ascoltaelc.com.au/"><u>https://www.ascoltaelc.com.au</u></a><br>• 20-year initial lease term (2045) + 2x 10-year options (2065)<br>• 3% annual fixed increase and market review at 10th, 20th and 30th anniversary of commencement date with cap & collar at 10%<br><br><b>Agent Questions:</b><br><br><b>Who does the fitout belong to?</b> seller<br><b>Why is the owner selling?</b> Winding down property trust, focusing on business<br><b>Is the tenant related to the owner in any way? </b>Yes, lease-back, seller is developer<br><b>Are mng and taxes recoverable?</b> All costs recoverable, incl mng and land tax<br><b>Does the property need any maintenance work?</b> No, brand new<br><b>Is the floor area 100% council approved?</b> Yes<br>
