26/10/2026
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Childcare: More Than Child’s Play
Could childcare be part of your club’s property diversification strategy?
Childcare assets have become an increasingly interesting option for clubs looking to create stable, long-term income streams from property. A quality childcare centre is often leased to an experienced operator on a 10–15 year agreement, sometimes with further options to renew. For a club, that can mean predictable rental income without having to operate the childcare business itself.
There can also be attractive commercial fundamentals. Anna notes that childcare assets can achieve net yields of around 5–6% or more, while many leases place costs such as rates, insurance, repairs and maintenance with the tenant rather than the property owner.
For clubs with underutilised land, there is another question worth asking: Do you buy an established childcare asset or build one yourself?
If the club already owns suitable land, developing a purpose-built centre can potentially activate an underused part of the site while creating a new commercial asset and diversified income stream.
BUT THERE’S A CATCH
Childcare property needs careful due diligence. The strength of the operator, lease terms, local market and regulatory approvals can have a significant impact on the long-term value of the asset.
One of the biggest traps Anna highlights is assuming a council-approved DA automatically means the childcare regulator will approve the same number of places. A site may be marketed with approval for 120 places, for example, but ultimately receive approval for fewer. Because childcare centres are commonly valued and leased on a per-place basis, getting this wrong can materially change the project's returns.
THE TAKEAWAY
Childcare can be a strong property diversification opportunity for clubs but the value is in getting the property, operator, lease and numbers right from the start. Your club land may be capable of more than you think. Suburbanite Property