Make up to $11m in potential earnings as Scotch College-linked property hits market

A purpose-built Mount Gambier childcare centre leased to a subsidiary of prestigious Scotch College Adelaide has hit the market, offering a savvy buyer the chance to add a business turning more than $300,000 profit per annum to their portfolio.

The property at 77-79 Suttontown Road, Suttontown, Mt Gambier – South Australia’s second-largest city – sits on a 3908sqm corner block and is leased to Beyond Early Learning, a wholly-owned subsidiary of prestigious Scotch College Adelaide.

Operating on a secure 15-year lease, it offers options to continue that until 2059.

JLL’s Mark Stafford and Claudia Brace are managing the sale and Mr Stafford says the contemporary 89-place centre offered buyers the chance to own an essential service with significant depreciation benefits.

The centre at 77-79 Suttontown Rd, Suttontown. Supplied

The property’s modern facade. Supplied

One of the learning spaces. Supplied

Another of the learning spaces. Supplied

another of the centre’s spaces. Supplied

“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.

“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.

“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.”

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Offered without a price guide, Mr Stafford said reasonably-priced new childcare centres were becoming harder to find amid rising construction costs, with most trading for significantly 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 said.

The investment – which features five early learning rooms catering to zero to five-year-olds – offers fixed 3.5 per cent annual increases and has a current net income of $325,853 per annum, plus GST and outgoings.

Some of the playground equipment. Supplied

A spacious outdoor area. Supplied

A green play area. Supplied

77-79 Suttontown Rd, Suttontown from the air. Supplied

Ms Brace said the building’s exemption from stamp duty made it a desirable asset for investors.

“For interstate investors, this represents potential savings exceeding $250,000 compared to equivalent investments elsewhere in Australia,” she said.

“The centre is also strategically positioned near multiple educational institutions, including nine schools with over 4,600 students within a four-kilometre radius.”

“This location places the centre directly opposite IGA Montebello and within walking distance of the University of South Australia campus,” Ms Brace said.

“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.”

It’s not the only childcare centre on the market at the moment, with 381-387 Prospect Road, Blair Athol on the market through CBRE and MMJ Real Estate Melbourne.

381-387 Prospect Rd, Blair Athol. Supplied

Some of the centre’s play equipment. Supplied

One of the outdoor areas. Supplied

The centre’s kitchen. Supplied

Built in 2017, it gives you the opportunity to move in and start operating immediately, with the site positioned near six primary schools, demonstrating significant demand for childcare services in the area.

“GapMaps analysis also indicates a demand factor of 6.17 children per available place, showing this is a viable and in-demand location for a centre of this size,” its realcommercial.com.au advertisement reads.

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“With refurbishment opportunities available, this is a rare opportunity for a tenant or occupier to begin trading quickly.”

That site sits on a 3074sqm landholding passed by 12,300 cars daily, according to the ad.

A spacious learning area. Supplied

Plenty of room to move. Supplied

I think we all remember those tiny toilets from our childhood. Supplied

While the property is still listed as for sale on the website, official expressions of interest closed on Thursday, July 31.

Expressions of interest on the Suttontown property close Thursday, August 21 at 2:30pm.

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