<p>Newstead is a <strong>sought-after inner suburb</strong> of Launceston, Tasmania's second-largest city and the economic hub of the state's north. Located just <strong>3.6km from Launceston CBD</strong>, Newstead offers the perfect blend of residential appeal and proximity to urban amenities.</p> <p>The suburb features <strong>excellent educational infrastructure</strong> with four schools within 1km of the property and a total of 19 schools within a 3km radius. This concentration of educational facilities makes the area particularly attractive to families, supporting ongoing demand for quality childcare services.</p> <p>Newstead benefits from <strong>strong population growth</strong>, expanding from 5,366 in 2016 to an estimated 5,713 residents in 2023. The suburb is characterised by its <strong>family-friendly atmosphere</strong>, with 57.8% of households in the area having children. With 1,522 children aged 0-5 within a 3km radius, the catchment demographics strongly support the childcare business.</p> <p>The property enjoys <strong>strategic positioning</strong> surrounded by important social infrastructure including Launceston General Hospital, multiple private hospitals, and extensive retail options. Major retailers including Coles, Woolworths, Target, and the Kmart-anchored Launceston Plaza Shopping Centre are all within 1.6km.</p> <p>The broader Launceston region boasts a <strong>robust economy</strong> with a Gross Regional Product of $5.76 billion and strong employment opportunities. The city's focus on development is evidenced by $372 million in building approvals in 2023/24, positioning it well for continued growth and prosperity.</p>

<p>Newstead Child Care Centre is a <strong>well-established, family-owned childcare provider</strong> with over 20 years of operational history. The centre is licensed for 106 Long Day Care places, catering to children aged 6 weeks to 5 years.</p> <p>The tenant has achieved an <strong>'Exceeding' rating under the National Quality Standards</strong>, demonstrating their commitment to excellence in early childhood education. This quality focus has resulted in an extensive waitlist, reflecting the high demand and strong reputation cultivated over two decades.</p> <p>The centre offers a <strong>comprehensive curriculum</strong> including a Preschool program led by qualified Early Childhood Teachers, aligning with both the National Quality Framework and Early Years Learning Framework. Their educational approach emphasises play-based learning, fostering curiosity and self-directed exploration.</p> <p>Additional services include <strong>allergy awareness, nutritious meals, sun-safe practices</strong>, and government-funded Child Care Subsidy options, ensuring accessibility for diverse families.</p> <p>The tenant's long-standing presence in the community, combined with their quality focus and the purpose-built nature of the facility, positions them for continued operational success throughout the lease term.</p>

<p>This investment offers <strong>exceptional financial fundamentals</strong> with a secure income stream of <strong>$381,600 per annum plus GST</strong>. The newly established 15-year lease to 2039 includes <strong>two further 10-year options</strong>, potentially extending the tenant's occupation to 2059.</p> <p>Investor returns are protected through <strong>annual rent reviews to the greater of CPI or 3%</strong>, ensuring income growth that outpaces inflation. The net lease structure places responsibility for all outgoings with the tenant, including land tax, creating a true 'set and forget' investment proposition.</p> <p>Security is further enhanced with <strong>two bank guarantees</strong>, each equivalent to three months' rent plus GST, providing additional financial protection for the landlord.</p> <p>Comparable childcare transactions shown in the market evidence section demonstrate yields ranging from <strong>5.43% to 6.20%</strong> for similar assets, positioning this investment competitively within the current market.</p> <p>Childcare investments are recognised as <strong>defensive assets less affected by economic cycles</strong> than other property sectors. With government support through the $4.7 billion investment in early childhood education, the sector's fundamentals remain exceptionally strong.</p>

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