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For as little as $1, an upcoming charity event will give buyers the chance to purchase a Merrylands childcare centre.
The 91-place DA-approved site is being offered by daycare chain Thrive Early Learning — which is sending 100 per cent of the sales profits to charity — will be open to the highest bidder at the upcoming National Coptic Childcare Alliance (NCCA) industry gala event on 29 October.
Moreover, the developer has also announced they will fund between $1 million and $1.5 million to fit out the property.
NCCA chief executive Carl Elassal said the live auction gives individuals an optimal entry point into the booming childcare property market. Outside of the hype the “first-of-its-kind auction” will garner, Mr Elassal affirmed that it is a “genuine opportunity”.
“We know there is a desperate need for childcare places, especially in Western Sydney, and this is a chance for someone to start their own business in an urgent area of need,” he said.
Merrylands, in the Cumberland City Council local government area, is located 25 kilometres west of Sydney, with the latest census detailing there were 7,552 families in the area and 2,564 children under the age of four — equivalent to 7.9 per cent of the population.
Adding to this, Mr Elassal explained how the region comprises a “children-to-place ratio of one to four”. Adding how “that is, for every childcare place available, there are four children needing it”.
He noted how the centre is not franchised; therefore, the name is free to be decided by the new owner, who will also need to be willing and able to invest approximately $100,000 on furniture and play equipment such as bikes, easels and other art supplies.
“Really, it’s a once-in-a-lifetime chance for someone to get into the childcare industry as an operator. It is really hard to break into otherwise,” he said.
“Usually, a developer would charge at least a million-dollar contribution for a centre, plus a yearly percentage of the fees, while to buy an existing 90-place centre could cost as much as $4 million in goodwill.”
The winner of the auction will receive the turn-key centre without any developer fees or an ongoing contribution, while also receiving six months of free rent from the day they receive the keys of the finished centre.
“After six months, the developer will charge market value rent for 15 years, which at the moment is about $4,000 to $4,500 a month per child,” Mr Elassal said. It is estimated the centre will become profitable within six to 12 months of operation, while it will take roughly 15 months to reach 100 per cent capacity.
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