- Child care institution First Grammar Baulkham Hills has come onto the market, as investor interest in the asset class piques
- G8 Education, Australia’s largest ASX-listed child care company with over 470 locations throughout the country, now operates and leases First Grammar Baulkham Hills
- The purpose-built 39-seat child care asset has a 15-year lease term that expires in 2025, with a five-year extension option to 2030
- Since 2015, more than $1.8 billion in child care assets have been traded nationwide, according to JLL
Child care institution First Grammar Baulkham Hills has come onto the market, as demographics and rising utilisation rates continue to pique investor interest in urban properties.
G8 Education, Australia’s largest ASX-listed child care company with over 470 locations throughout the country, currently operates and leases First Grammar Baulkham Hills.
The purpose-built 39-seat child care asset has a 15-year lease term that expires in 2025, with a five-year extension option to 2030.
Gordon McFadyen and Dylan McEvoy of JLL Capital Markets (NSW) have been engaged to sell at 24 Witonga Crescent, Baulkham Hills via a public auction campaign.
Since 2015, more than $1.8 billion in child care assets have been traded nationwide, with 2021 year-to-date (YTD) market sales volumes now exceeding overall sales volumes for 2020, according to JLL statistics. Over $220 million in assets were traded throughout the marketplace in the six months ending June 30, 2021.
“2021 has shown very high levels of demand in child care assets, with strong investment being witnessed in terms of both sales volumes and yield compression,” Mr McFadyen said.
“The sector is very resilient and has become a highly desirable asset class as investors pursue secure, long leased assets to quality tenant covenants.
“Child care centres are a perennially in-demand asset class, which is especially true for centres located in metropolitan areas. We are seeing sustained demand for metropolitan child care centres with approximately 65% of transactions since 2019 occurring in metropolitan locations.”
Mr McFadyen said they expect strong investor interest in the asset due to its price point, long term lease and ASX-listed tenant.
“The centre has an excellent reputation, healthy waiting list and has been an established childcare destination in Baulkham Hills for more than 15 years,” he said.
“This burgeoning location with strong demographics of families and professionals point towards continuing high demand for childcare services in this location well into the future.”