Rare as hen’s teeth childcare asset heading to auction
Newstead Childcare Centre, No.59B Amy Rd, Newstead. Picture: Supplied
OPPORTUNITIES to invest in a Tasmanian childcare property are rare, coming along just once or twice a decade.
Following the standout sale of a Lindisfarne childcare centre earlier this year, Burgess Rawson has brought another premium childcare asset to market in Launceston, in partnership with co-agent Elders Tasmania.
Set to test investor appetite at Burgess Rawson’s final Investment Portfolio Auction for the year on December 11, the property at 59B Amy Road, Newstead has already attracted significant local and national interest.
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No.59B Amy Rd, Newstead.
Burgess Rawson partner and childcare investment specialist, Natalie Couper, described the Newstead Childcare Centre as a high-performing asset located in a prime school catchment area.
“Opportunities like this are extremely scarce in Tasmania,” Ms Couper said.
“That scarcity, combined with the sector’s robust and landlord-friendly lease structures, makes these investments highly desirable.
“The childcare sector benefits from strong government support and oversight, ensuring long-term stability and growth that other asset classes cannot replicate. In the first week of this campaign, we’ve seen a strong level of inquiry.”
No.59B Amy Rd, Newstead.
The Newstead Childcare Centre is leased on a new 15-year term through to 2039, with two further 10-year options extending the lease to 2059.
The provider, a trusted operator with more than 20 years of experience, boasts an extensive waitlist and is rated ‘Exceeding’ under the National Quality Standards.
The centre occupies a well-maintained 883sq m facility, licensed for 106 long day care places, on a significant 5,593sq m landholding.
No.59B Amy Rd, Newstead.
Ms Couper highlighted the lease’s favourable terms, including annual rent reviews to the greater of CPI or 3 per cent, with the tenant responsible for all outgoings, including land tax.
“It’s situated close to Launceston’s CBD in an educational precinct with four schools within 1km, collectively serving 2465 full-time students,” she said.
“This is an A-class site that meets every criterion childcare operators seek when selecting locations, including proximity to schools, employment hubs, transport routes, and shopping precincts.”
No.59B Amy Rd, Newstead.
The childcare sector has proven its resilience during challenging economic times, further enhancing its appeal to investors.
“The limited number of childcare assets available in Tasmania only amplifies their desirability,” Ms Couper said.
The property will go under the hammer at the Burgess Rawson Investment Portfolio Auction on December 11 at 10.30am, held at the Crown Casino in Melbourne.
For more information or to arrange an inspection, contact Burgess Rawson or Elders Tasmania.
