The near-new Nido Early School Maylands at 135-137 Peninsula Road has sold for $7.2 million, marking the  largest individual childcare transaction ever recorded in Western Australia. The sale was part of a national  fund manager’s strategic divestment program, aiming to reallocate capital into alternative asset classes. 

The property, a modern two-level childcare centre licensed for 112 places, is located on a 1,972sqm site and  sold at a yield of just over 6%. 

The sale was brokered by Sterling Property’s Jake Wallman and Simon Brady in collaboration with CBRE’s  Australian Healthcare and Social Infrastructure team, including Sandro Peluso, Jimmy Tat, and Marcello  Caspani-Muto. 

Simon Brady, Associate at Sterling Property, said the property generated significant interest from a wide  range of investors. 

“The childcare sector continues to demonstrate sustained growth, underpinned by population growth and  federal government support of families and early childhood educators alike,” Mr Brady said. 

“Investors, developers, and operators remain active in the current market to meet demand in core  locations.” 

Jake Wallman, Partner at Sterling Property, added that the strong fundamentals of the asset made it highly  attractive to the buyer. 

“This transaction highlights the ongoing investor demand for well-located childcare investments with strong  lease covenants,” Mr Wallman said. 

“The purchaser was particularly attracted to the inner-city location and the national operator’s reputation. 

Mr Wallman also noted the broader market’s appetite for well-positioned commercial properties in Western  Australia. 

“Despite broader economic challenges, assets such as this continue to perform well and attract savvy  investors,” Mr Wallman said. 

“This record-breaking sale reflects the strength of the childcare sector in WA, typically characterised by  secure long-term leases and profitable operators.” 

Nido Early School, a leading national operator, operates 46 centres in WA, with further centres scheduled to  open later this year and in early 2025.

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