Sterling Property has sold the Bayonet Head Early Learning Centre at 13 Stranmore Boulevard, Bayonet Head, for $3,320,000 (going concern), reflecting a sharp 6.70% yield for a regional childcare asset.
The purpose-built centre is licensed for 72 places and leased to experienced regional operator trading as Bayonet Head Early Learning until 2040, with options to 2060 and fixed 3% annual rent increases. The property returns a net income of $222,480 per annum plus GST and outgoings.
Built in 2025 on a 1,432sqm landholding, the centre sits at the entrance to the Oyster Harbour estate, a master planned community being delivered by DevelopmentWA comprising 1,899 lots on completion. The asset was taken to market via an Offers Invited campaign and attracted multiple offers before selling to an interstate investor.
Regional centres are attracting growing investor attention as more Australians relocate from capital cities. The Regional Movers Index recorded Albany with the third highest growth in net internal migration of any local government area in the 2025 report, reinforcing its appeal beyond the metro market.
Bayonet Head is one of Albany’s fastest growing suburbs, with the City of Albany’s population up 13.6% since 2015 and no competing childcare centres within a five-kilometre radius.
“This result shows interstate capital is now looking well beyond the metro market for essential services investments,” Mr Wallman said.
“A secure long-term lease, fixed reviews and an experienced operator gave buyers the confidence to compete hard on price.”
Mr Brady said the depth of enquiry reflected a broader shift in investor thinking.
“Buyers are increasingly comfortable backing regional childcare where the fundamentals stack up,” Mr Brady said.
“Population growth, no competing supply and a proven operator outweighed any concern about location.”
The sale underscores continued investor appetite for childcare assets in high-growth regional catchments, particularly where supply is constrained and lease covenants extend well beyond a decade.
To discuss childcare investment opportunities, contact Jake Wallman on 0403 975 298 or Simon Brady on 0407 486 401.
