![]() Asset Class: | Childcare |
![]() Price: | $ 44444 |
![]() Net Yield: | 4.00 % |
![]() Net Yield - including solar strategy: | % |
![]() Property Market Status: | On Market |
<p>Presenting an exceptional investment opportunity in the thriving Tasmanian market - the Newstead Child Care Centre at 59B Amy Road, Newstead. This high-performing childcare investment offers unparalleled security and growth potential, strategically positioned within a prime educational precinct.</p> <p>Secured by a brand new 15-year net lease to 2039 with two further 10-year options extending to 2059, this investment delivers reliable long-term income with annual rent increases to the greater of CPI or 3%, ensuring consistent growth. The current net income stands at $381,600 per annum plus GST.</p> <p>The purpose-built 883sqm facility is licensed for 106 Long Day Care places and sits on a substantial 5,593sqm freehold landholding with 23 on-title car parking spaces. Newstead Childcare Centre is a well-established operator with over 20 years in the business and boasts an 'Exceeding' rating under the National Quality Standards, demonstrating their commitment to excellence.</p> <p>Located in the affluent metro suburb of Newstead, just 3.6km from Launceston CBD, the property benefits from its position within a highly sought-after school catchment area. Four schools within a 1km radius collectively service over 2,465 students, making this location exceptionally attractive for families seeking quality education.</p> <p>The immediate surroundings offer exceptional convenience with major retailers including Coles, Woolworths, Target, IGA, and the Coles & Kmart-anchored Launceston Plaza Shopping Centre all within 1.6km. Important healthcare infrastructure is also nearby, with Launceston General Hospital and several other medical facilities within easy reach.</p> <p>Childcare investments continue to be recognized as excellent defensive assets, less affected by economic cycles than other property sectors. With government commitment to making early childhood education more affordable through a $4.7 billion investment over four years, the sector enjoys strong policy support and increasing demand.</p>
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<p>Newstead is a <strong>charming inner suburb</strong> just 3.6km from Launceston's CBD, offering the perfect blend of residential appeal and proximity to urban amenities. This strategic location provides residents with easy access to both city conveniences and suburban tranquility.</p> <p>The suburb has shown <strong>impressive growth</strong>, with the population increasing from 5,366 in 2016 to an estimated 5,713 in 2023. More notably, Newstead has experienced <strong>substantial property value appreciation</strong> with a 28.2% median house price growth since November 2020.</p> <p>Newstead is bounded by natural scenic features including the North Esk River and Scotch Oakburn Park, providing beautiful green spaces. The area is <strong>renowned for its educational excellence</strong>, housing several reputable schools including Newstead College, Scotch Oakburn Junior School, Newstead Christian School, and Launceston Preparatory School.</p> <p>The broader Launceston region offers a <strong>robust economic environment</strong> with a Gross Regional Product estimated at $5.76 billion, accounting for approximately 14.91% of Tasmania's GSP. With a population of 71,788 and 6,007 local businesses, Launceston serves as the capital and major service centre of northern Tasmania.</p>
Additional Location Information File<p>Newstead Child Care Centre is a <strong>well-established, family-owned childcare provider</strong> with an impressive track record of over 20 years serving the local community. The operation has built a sterling reputation, evidenced by its extensive waitlist and high demand for places.</p> <p>The centre has achieved an <strong>'Exceeding' rating under the National Quality Standards</strong>, demonstrating its commitment to delivering superior early childhood education. This purpose-built facility is licensed for 106 Long Day Care places, catering to children aged 6 weeks to 5 years.</p> <p>Featuring <strong>five spacious, well-equipped learning areas</strong> with direct access to external play areas, the thoughtfully designed centre includes comprehensive facilities such as three cot rooms, three bathrooms, kitchen with pantry and servery piazza, laundry, office and staff rooms, and extensive storage spaces.</p> <p>The centre operates a comprehensive curriculum including a <strong>Preschool program led by qualified Early Childhood Teachers</strong>, aligned with the National Quality Framework and Early Years Learning Framework. Their educational approach emphasizes play-based learning, fostering curiosity and guided learning in both indoor and outdoor environments.</p> <p>As a family-owned operation, the centre maintains a <strong>strong focus on quality care and positive relationships</strong> with children and families, creating a nurturing environment where each child's individuality is celebrated.</p>
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<p>This premium childcare investment offers <strong>exceptional financial stability</strong> with a newly secured 15-year net lease running from 26 September 2024 to 25 September 2039, complemented by two further 10-year options extending potential tenure to 2059.</p> <p>The property generates a <strong>robust net income of $381,600 per annum plus GST</strong>, with investor-preferred net lease terms making the tenant responsible for all outgoings including land tax. This structure ensures predictable cashflow without unexpected operational expenses.</p> <p>Income growth is <strong>contractually secured</strong> through favorable annual rent reviews to the greater of CPI or 3%, providing protection against inflation while ensuring consistent income appreciation. Security is further enhanced by two bank guarantees, each equivalent to three months' rent plus GST.</p> <p>Comparable childcare transactions across Australia demonstrate the <strong>sector's strong performance</strong>, with recent sales showing yields ranging from 5.43% to 6.20%, positioning this investment favorably within the current market.</p>
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<ul> <li>Well-established childcare provider trading for over 20 years with extensive waitlist</li> <li>Brand new 15-year net lease to 2039 with two further 10-year options to 2059</li> <li>Substantial freehold site of 5,593sqm with purpose-built 883sqm facility</li> <li>Licensed for 106 LDC places with 'Exceeding' National Quality Standards rating</li> <li>Guaranteed income growth with annual increases to the greater of CPI or 3%</li> <li>Investor-friendly net lease with tenant responsible for all outgoings including land tax</li> <li>Prime location in Newstead, just 3.6km from Launceston CBD</li> <li>Positioned within major school catchment with 4 schools within 1km radius</li> <li>Surrounded by major retailers including Coles, Woolworths, Target and Kmart</li> <li>Located in an affluent suburb with strong 28.2% median house price growth since Nov 2020</li> <li>Secure $381,600 p.a. net income plus GST with reliable tenant covenant</li> <li>Childcare sector supported by $4.7 billion government investment over 4 years</li> <li>Defensive investment less affected by economic cycles than other property sectors</li> </ul>