At Sterling Property, we continue to witness strong demand for strategic investments in sectors underpinned by long-term growth and stability. One sector that is thriving is early learning and childcare, as demonstrated by our recent record-breaking sale of the Nido Early School Maylands at 135-137 Peninsula Road.
This $7.2 million transaction represents the largest individual childcare sale ever recorded in Western Australia. The sale is part of a broader national trend, with investors increasingly turning to well-located childcare centres, which offer a combination of secure leases, government support, and growing demand for quality early education.
The Fundamentals Behind the Sale
This modern two-level facility, licensed for 112 places, sits on a 1,972 sqm site and was sold at a yield of just over 6%.
Simon Brady, Associate at Sterling Property, points out that the key to this sector’s growth lies in the population dynamics and federal government policies supporting both families and early childhood educators.
“Investors, developers, and operators remain active in the current market to meet demand in core locations,” Mr. Brady said.
Childcare Centres similar to Maylands benefit from stable returns from long-term leases with national operators, like Nido Early School, which has a strong presence in WA with 46 centres and more set to open in 2025.
Why Childcare Centres Appeal to Investors
The childcare sector has become increasingly attractive due to rising populations creating ongoing demand for early learning services.
According to Jake Wallman, Partner at Sterling Property, the appeal of well-located childcare centres with strong lease agreements is undeniable.
“This transaction underscores the ongoing investor demand for properties with robust lease covenants,” Mr. Wallman noted, adding that the inner-city location and national operator’s reputation were significant factors in the purchaser’s decision.
“The purchaser was particularly attracted to the inner-city location and the national operator’s reputation.”
Resilience in the Face of Economic Challenges
Despite broader economic uncertainties, the childcare sector remains a resilient investment option. Mr. Wallman remarked that assets like Nido Early School continue to perform well.
“This record-breaking sale reflects the strength of the childcare sector in WA, particularly for properties characterised by secure long-term leases and profitable operators,” Mr. Wallman said.
A Bright Future for WA’s Childcare Investments
With national and local operator planning to expand their footprint further across WA, it’s clear that the early learning sector will continue to be a cornerstone of commercial property investment. Investors and developers alike should take note of this growing asset class as it represents one of the most stable and in-demand sectors in the WA property market.
Sterling Property remains at the forefront of these trends, providing expert guidance to investors and developers seeking opportunities in Western Australia’s thriving childcare sector. Contact us today to learn more about investment opportunities in this space.
For more information on the recent sale contact:
Sterling Property
Jake Wallman
Partner
+61 403 975 298
jwallman@sterlingproperty.au
Sterling Property
Simon Brady
Associate
+61 407 486 401
sbrady@sterlingproperty.au
