Interest Grows on Childcare Centre Investments

Investors are now keen on setting up childcare centres,as the return in sales have become high yielding. An analyst said that it could even rival that of bank-leased investments.

Dean Venturato, who is the director at Burgess Rawson and has had years of experience in marketing, said that investors interested in child care centres have seen that there is security in this type of business.

He says, “It is not a function that can be undertaken by a computer, online or off shore, which is a phenomenon affecting many Australian businesses at the moment.”

Sales of childcare centres are booming in areas like Coffs Harbour, Hornsby, Macquarie Fields, Morisset, West Hoxton and Warriewood. Their lease go on for a reasonable period of time with a selling price that fall between $1.5 to $3 million. Landowners can also rely on good operators and manage as much as 8% yield from this venture.

Added Mr. Venturato, “The fear factor surrounding the collapse of Eddy Groves’ ABC childcare empire seems to have dissipated, with buyers recognising that the industry is now more sound and a necessary service for many families.”

Because many families have two working parents to keep with financial responsibilities, childcare services demands are increasing.

To investors, Mr. Venturato said, “The buyers will be attracted to childcare centres as awareness increases, and especially among SMSF buyers, who have accounted for more than half of the acquisitions of late.”

“Bank-leased investments have traditionally been hotly contested but now childcare centres are rivalling the bank investments. It is not uncommon for us to receive more than 100 inquiries and issue more than 20 sale contracts to interested buyers during an auction campaign.”