MORAYFIELD - Childcare Centre
Kindergarten Development Investment Project
Industry with rigid demand
Since the outbreak of the Covid-19 pandemic, the importance of essential social services has been highly emphasized, and the federal government's strong support for the kindergarten industry has been particularly notable.
Queensland Kindergarten Industry
A necessity-driven industry
Since the outbreak of the COVID-19 pandemic, basic social services and their importance in ensuring Queensland maintains a strong and active economy have received greater attention. The government's strong support for the early childhood education industry is particularly prominent.
In the post-pandemic era, the kindergarten industry is the only sector to receive additional financial subsidies, fully demonstrating the government's commitment to this industry and its important role as a social infrastructure, while also indirectly reflecting the low risk of the industry. In addition, the kindergarten market in Queensland is growing rapidly, but the market competition is far lower than in New South Wales and Victoria.
The government budget of 2021 further emphasized this point. The budget announced that the childcare costs for a second child in certain families will receive subsidies of up to 95%. The government predicts that this additional funding will result in about 40,000 people working an extra day per week and increase the gross domestic product by 1.5 billion Australian dollars.
Industry Key Data
The kindergarten industry has experienced strong growth over the past ten years.
Australian kindergarten real estate is supported by the basic industry and has shown steady growth over the past decade. The demand for kindergarten services is mainly driven by the rising female labor force participation rate and the increasing number of children with working parents.
The real estate market transaction volume for kindergartens reached a record high in 2023
Over the past five years, the Australian kindergarten market has been a popular real estate investment category. Favorable demographics and increasing utilization rates have further sparked investor interest. Since 2015, more than AUD 1.8 billion in kindergarten assets have been transacted. Since 2021 (YTD), sales have rebounded, exceeding the total sales of 2020. In the six months ending June 30, 2021, over AUD 170 million in assets were exchanged.
Attractive lease structure for kindergarten assets
Kindergarten assets offer investors a highly attractive lease structure. Currently, as operators increasingly focus on high-quality renovations, many are seeking longer lease terms (typically 15–20 years). Recently, Charter Hall Social Infrastructure REIT agreed to lease 48 properties in its portfolio to the major operator Goodstart for a 20-year term, with fixed annual growth. Similarly, Arena REIT recently renegotiated 87 leases with Goodstart, extending the lease term to 25 years.
Overview of the Kindergarten
Morayfield is located north of Brisbane in Queensland and is a rapidly growing area. As the population in nearby communities increases, new residential developments continue to be built in the area to meet the demand.
The project has a superior geographical location, situated at an important intersection of major transportation routes, and is equipped with public bus and train station systems.
A highly qualified team with over 17 years of cumulative operational experience, owning and managing more than 10 kindergartens in Queensland.
The investment process is clear and transparent, allowing you to understand the capital investment in each part in detail, ensuring the security of the funds.
The operations team customizes core tasks such as kindergarten interior design, kindergarten promotion, enrollment plans, and operational launch management.
Operated by Anxin Capital, achieving the true maximization of passive income.
