Perth childcare centre sells off-market amid growing investor demand

A single-story childcare centre has changed hands off-market for $5.5 million in the Perth suburb of Byford, as steady growth in the sector fuels investor demand.

Located at 43 Granfell Way the 2,389 sqm property includes a single-story childcare service for 106 children. The property is leased to Bloom Early Education. 

The sale, which achieved a yield in the low 6% range, was driven jointly by CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto with Sterling Property’s Jake Wallman and Vincent Siciliano.

Mr Wallman of Sterling Property noted, “The childcare sector continues to demonstrate sustained growth, underpinned by strong population growth and federal government support of families and early childhood educators alike. Investors, developers and operators continue to be active in the current market to help meet demand in core locations.”

The Byford sale follows recent successful collaborative transactions for the CBRE and Sterling Property teams, including the sale of the Nido Early Learning Centre for $7.2 million in Maylands in late 2024 which was the largest single centre sale in WA’s history.

Mr Peluso said the team had successfully transacted four sales across WA, including the Nido Early School in Palmyra for $6.55 million, in less than six months and noted the yields being achieved in WA are almost aligned with Victoria – though buyer depth remains thinner. 

“The Perth market has been underappreciated from a childcare investment perspective for a substantial period of time. While land values are naturally lower, operational performance is incredibly impressive as only select large-scale operators have a presence in the Perth market,” he said.

“While there is no question buyer depth is not to the levels of other capital cities like Brisbane, Melbourne and Sydney the yields have compressed substantially and maintained at these levels over the past six months. Our last four deals have all sat at close to 6.0% returns,” Mr Peluso added.