A brand-new childcare centre has quietly traded off-market in Sydney’s Northwest, reflecting strong buyer demand for early education assets.
The property, located at 37-39 Crane Road, Castle Hill, sold for $10 million, reflecting a 4.54% yield. The sale was brokered by Stonebridge Property Group’s Tom Moreland, Brett O’Neill, Michael Collins, and Rory Alexander.
The overseas-based purchaser was drawn to the property’s strong fundamentals. The purpose-built 90 place centre occupies a 1,843 sqm site and features 30 basement car parks, delivering maximum depreciation benefits. The asset is underpinned by a brand new 15-year net lease to 2040, with options extending to 2060, and includes fixed 4% annual rent increases. The property generates a net income of $454,500 per annum + GST.
Positioned just 250m from a major primary school and within a 3km radius of 17 additional schools, the centre benefits from its proximity to Castle Towers Shopping Centre (18M+ annual visitors) and the booming Hills District, which is forecast to experience 85%+ population growth by 2046. The location is further enhanced by the new Sydney Metro service and a median house price of approximately $2.4 million.
Commenting on the transaction, Stonebridge Partner, Tom Moreland said:
“Childcare assets positioned in well-established Sydney metropolitan locations remain the most sought after nationally. Strong depth of local and overseas capital continues to pursue ‘trophy like and development-grade’ opportunities, which we expect to continue into 2026 as the safe haven and long-term fundamentals of childcare investment are acknowledged and continue to grow in popularity.”Stonebridge Senior Executive Brett O’Neill added:
“Investors continue to place an emphasis on asset stability, underpinned by the quality of the operator in place. Young Academics are known to be one of the leading private NSW groups, with a recent cash injection via a US-based PE firm fuelling further growth and, in turn, reinforcing the purchaser’s confidence in their long-term performance at the Castle Hill location.”
This transaction contributes to Stonebridge’s ongoing leadership in the childcare investment market, where the national team closed out 66 transactions in 2025 alone, amounting to more than $416,000,000.
For further information, please contact:
Tom Moreland – Partner | +61 408 072 822 | tmoreland@stonebridge.com.au
Brett O’Neill – Senior Executive | +61 403 511 070 | boneill@stonebridge.com.au
Michael Collins – Partner | +61 404 023 204 | mcollins@stonebridge.com.au
Rory Alexander – Executive | +61 474 038 353 | ralexander@stonebridge.com.au
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