Scotch College-linked childcare centre in Mount Gambier hits the market with $11m potential

A purpose-built childcare centre in Mount Gambier, leased to a subsidiary of the prestigious Scotch College Adelaide, has entered the market, offering investors a lucrative opportunity. The property, located at 77-79 Suttontown Road, Suttontown, is poised to attract significant interest due to its strategic positioning and robust financial prospects.

The centre, operated by Beyond Early Learning, a wholly-owned subsidiary of Scotch College Adelaide, sits on a 3,908-square-metre corner block in South Australia’s second-largest city. It operates under a secure 15-year lease with options extending until 2059, offering a stable investment for potential buyers.

Mark Stafford and Claudia Brace from JLL are managing the sale of this contemporary 89-place centre. Mr Stafford highlighted the resilience of the Australian childcare market, noting its strong government support and funding. “The Australian childcare market continues to demonstrate remarkable resilience, underpinned by bipartisan government support and over $16 billion in federal funding for the Child Care Subsidy in 2025–26,” he said.

He further emphasised the appeal of the asset class, citing increased demand for childcare services. “Investors continue to be drawn to the asset class due to strong market tailwinds, with the numbers of hours attended by children up 33 per cent nationally since 2010, fuelling confidence in the sector,” Mr Stafford added.

The centre’s affiliation with Scotch College Adelaide adds to its allure, offering a high-quality educational environment. “Beyond Early Learning brings exceptional quality, being a part of the prestigious Scotch College Adelaide education ecosystem. Their focus on premium early learning environments creates a compelling offering in the Mount Gambier market, with the centre trading well above 90 per cent occupancy within four months of opening its doors in late 2024,” Mr Stafford explained.

The property is offered without a price guide, but Mr Stafford pointed out that new childcare centres are becoming increasingly scarce due to rising construction costs, with many trading for more than $8 million. “The accessible price point, coupled with the opportunity to secure an asset backed by such a high-quality and prestigious education institution, is sure to test the appetite of investors,” he noted.

With a current net income of $325,853 per annum, plus GST and outgoings, the investment offers fixed 3.5 per cent annual increases. The centre features five early learning rooms catering to children aged zero to five years, providing essential services to the local community.

Ms Brace highlighted the financial advantages for investors, particularly those from interstate. “The building’s exemption from stamp duty makes it a desirable asset for investors,” she said. “For interstate investors, this represents potential savings exceeding $250,000 compared to equivalent investments elsewhere in Australia.”

She also emphasised the strategic location of the centre, which is near multiple educational institutions. “The centre is also strategically positioned near multiple educational institutions, including nine schools with over 4,600 students within a four-kilometre radius,” Ms Brace said. “This location places the centre directly opposite IGA Montebello and within walking distance of the University of South Australia campus.”

The surrounding area is well-suited for families, a factor that supports ongoing demand for childcare services. “It’s a well-established family area, with more than a third of households made up of couples with children or single-parent families. High local employment is also helping to support ongoing demand for childcare services,” Ms Brace added.

The Mount Gambier property is not the only childcare centre on the market. A similar opportunity is available at 381-387 Prospect Road, Blair Athol, marketed through CBRE and MMJ Real Estate Melbourne. Built in 2017, this centre is positioned near six primary schools, demonstrating significant demand for childcare services.

Expressions of interest for the Suttontown property are set to close on Thursday, August 21 at 2:30 pm, presenting a limited window for interested parties to capitalise on this promising investment opportunity.