- Sydney childcare centre sold off-market in 48 hours
- One of NSW's largest childcare centre sales in 2021
- Set to be home to Little Zak's Academy
A brand new childcare centre in Sydney has been snapped up inside 48 hours, in one of the state’s largest sales of its kind this year.
The 1,047sqm property, located in Hunters Hill on the north shore, was completed in August and sold on Tuesday to Electrical City shortly after hitting the Knight Frank database.
The childcare centre can facilitate 76 children, and offers two floors of internal and external learning and play areas as well as a 17-car basement car park.
The property will be home to one of Australia’s largest privately-owned childcare providers, Little Zak’s Academy, with whom a lease is already in place until 2031.
The lease also offers a further 10 plus 10-year options, with Little Zak’s Academy set to see minimum annual rent increases of four per cent.
Demi Carigliano, Associate Director of Knight Frank, said the property was in a prime location and demand for the asset was strong.
“We sent it to our database on a Monday and had the deal done by Tuesday afternoon.
“The strength of the covenant was one of the biggest drawcards, with a high-quality tenant for at least the next 10 years, providing a near-guaranteed and steady income,” he said.
Childcare centres had proven to be a secure asset class throughout the pandemic.
Back in March, The Property Tribune reported on a $5.2 million property sale in West Ipswich (in Queensland), which can cater for 136 children. In February, another centre in Essendon (Victoria) was sold for $8.6 million.
“The childcare industry has become secure with government rebates due to Covid lockdown and restrictions, and as such childcare-based investments continue to be sought after by buyers.”
Anthony Pirrottina, Associate Director of Knight Frank
Little Zak’s Academy in Hunters Hill is set to open its doors to the public in October.