‘Orchard Early Learning Forestville’ is the latest Sydney asset to spark investor interest, offering hopeful purchasers a rarely seen combination of underlying land value and significant building scale, representing a virtually irreplaceable trophy Sydney asset in today’s planning and construction environment.
The newly developed childcare centre occupies a landmark 3,773 sqm site on Warringah Road that may be the largest consolidated land parcel dedicated to a childcare operation in metropolitan Sydney, with exposure to 56,000+ vehicles daily and maximum depreciation benefits courtesy of brand new improvements. This substantial land holding is secured with land tax free status as a NSW childcare centre, providing exceptional long-term value protection.
The offering follows Stonebridge’s record sale of a childcare centre in Newport which traded at a sale rate of per $181,943 per licensed place.
The property is secured by a brand new 15.5-year triple net lease to Orchard Early Learning, with options extending to 2060. This sought-after lease structure includes annual rent increases to the greater of 3.25% or CPI, and all outgoings – including structural repairs – are fully recoverable from the tenant. Positioned adjacent to Forestville Primary School and within a 3km radius of 15 schools hosting over 6,500 students, the centre benefits from exceptional demand drivers. It features 152 licensed places, 38 car parks, and premium facilities including a vegetable garden, pilates studio and ample communal areas for families and staff alike.
“Astute purchasers will recognise the benefits of acquiring an asset which is near impossible to replicate, particularly given its status as one of metropolitan Sydney’s largest childcare landholdings with a land tax free exemption.” said Stonebridge professional, Brett O’Neill. “Inherently, scarcity of similar trophy opportunities will drive capital growth and ensure tenant stability, whilst the long term triple net lease structure provides a secure income stream with compounding annual increases and protects investors from any capital expenditure across the lifetime of the lease.”
Tom Moreland, Stonebridge Partner, added “The childcare sector is renowned for its resilient and defensive nature, buoyed by an increase in dual-income households and bipartisan political support, whereby the federal government receives a compelling return on its $14B investment including increased workforce participation and superior educational outcomes. ‘Orchard Early Learning Forestville’, with its unprecedented scale and land holdings, is perfectly positioned to meet that demand in a suburb where families dominate and quality education is a priority.”
The property is offered for sale via Expressions of Interest, closing Wednesday, 3 December at 3pm (AEDT).
For more information, please contact the team below:
Brett O’Neill | +61 403 511 070 | boneill@stonebridge.com.au
Tom Moreland | +61 408 072 822 | tmoreland@stonebridge.com.au
Michael Collins | +61 404 023 204 | mcollins@stonebridge.com.au
Kevin Tong | +61 422 848 818 | ktong@stonebridge.com.au
Join The Discussion