Childcare is an asset with a high on-sale appeal to investors. The childcare sector has been the fastest growing commercial real estate investment class in recent years, driven by increased supply, high investor demand and strong ongoing government funding.
Increased government funding, higher birth rates, a greater number of females returning to the workforce and parents seeking a quality early learning environment have created a demand for childcare services like never before. Compounding growth in the sector is our significant population growth, which is set to continue for many years.
However, success in this business is all about high-quality operators in high-quality locations operating in well-designed compliant buildings.
Over the past five years, the industry has become vastly more professional and complex, creating myriad options for different styles of education including language and cultural differences. These options create opportunity and choice for parents. Parents today are striving for the best level of service, care and education for their children and a highly rated quality standard is critical in decision-making and most influential in achieving greater occupancy levels.
The design, development and construction of childcare centres is a specialist and technical area; requiring dedicated experts to work through the design, planning, traffic (drop-off & pick up), costing, governmental, regulatory controls and other complexities that surround each stage of the development process, right through to occupancy. Every operator has unique design & operational requirements that need to be managed and respected.
Sites sourced and presented by Mollard Property Group will be in demand-driven locations, based on Childcare Operator requirements & mandates. Pre-committed Tenants will be secured via an Agreement for Lease prior to the property acquisition going unconditional. Securing a high-quality national tenant prior to property commitment is key to the success of property investment.
Check out Mollard Property Group’s childcare development expertise across Australia in
Mollard Property Group have been engaged by quality and experienced Childcare Operators seeking prime locations in Melbourne, Brisbane and Sydney for turnkey lease opportunities.
No two Childcare Operators are the same; each having their own unique location and operational requirements. Mollard Property Group work directly with their Childcare Operator Clients to understand their requirements and will send them lease opportunities based on these set criteria.
It is acknowledged that the calibre of the Tenant has a direct impact on the end value of a childcare asset. Mollard Property Group will ensure that the Tenant they connect to in each project is financially experienced and can agree to the proposed Leasing Objectives.
Mollard Property Group understand risk mitigation is vital in development projects, we ensure our investors de-risk the entire process by engaging the Operator first.
Mollard Property Group also offer investors a more conservative avenue which provides excellent returns without the hassle of development. Investors can enter into an agreement with a Developer to purchase the childcare centre on completion off-market. As the Developer is able to reduce sales and marketing costs and risks, lower profit margins are required, passing on the savings to the investors.
This can be achieved via variable arrangements, for example, a Development Agreement or land and build arrangement, similar to a house and land package in the residential market.
Level 50/120 Collins Street, Melbourne Victoria 3000