Day care Centre to go up for Charity Auction
Would-be childcare centre operators are being given the rare chance to get into the industry, with a once in a lifetime opportunity to make the winning bid at a charity auction for a daycare centre in Sydney’s West.
The National Coptic Childcare Alliance (NCCA) Industry Gala Event on the 29th October will see a 91 place, turn-key childcare centre auctioned off to the highest bidder, with the proceeds going to charity.
NCCA Chief Executive Carl Elassal says with commercial property investors zeroing in on the booming childcare property market, the live auction will give someone the unique chance to get a leg up into the industry.
“It’s a first of its kind auction, so I think it will create some hype, but this is a genuine opportunity,” Elassal said.
“We know there’s a desperate need for childcare places, especially in Western Sydney and this is a chance for someone to start their own business in an area of urgent need.”
The 91 place DA-approved childcare centre will be located in Merrylands with the developer to fully fund the fit out, estimated to be around $1-$1.5M.
“Merrylands in Sydney’s west is a high demand area with a children to place ratio of four to one. That is, for every childcare place available, there are four children needing it.
“This will not be a franchise. The childcare centre will be called whatever the winning bidder wishes.”
The operator will need to invest about $100,000 on furniture and play equipment like bikes, easels and art supplies.
“This is a massive opportunity, really it’s a once in a lifetime chance for someone to get into the childcare industry as an operator. It’s really hard to break in otherwise.
“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 $4M in goodwill.”
This auction will see the winning bid receive the turn-key centre with no developer fees or an ongoing contribution.
“The winning bidder will also have six months free rent from the day they are handed the keys of the finished daycare 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.
The annual market rent is approximately $380,000 for a 91 place centre.
“It typically takes a few weeks to get your Service Approved Centre licence from the department of education to operate.
“We estimate you should be making a profit within 6 to 12 months. To reach 100 percent capacity takes about 15 months.
Leading childcare provider Thrive Early Learning Centres is sponsoring the prize, in conjunction with the developer.
Elassal says the live charity auction could see the childcare centre snapped up way under market value.
“It will really depend on who is in the room on the day.”
Issues facing the Early Learning sector will be discussed at The National Coptic Childcare Alliance Industry Gala event at Star City Casino from 4pm on October 29th 2022.
Expert on Perseverance and Exponential Growth and Success, Alex Banayan will also make an address.
https://www.eventbrite.com.au/e/national-coptic-childcare-alliance-launch-event-tickets-394286761317
Daily Bulletin
