When it comes to building a strong investment portfolio, most wholesale investors know the importance of diversification. Spreading your investments across different asset types helps reduce risk and smooth out returns over time.
An asset class that can be overlooked is childcare, a growing sector with strong demand. Families need reliable early learning services, and governments continue to support the industry through funding and policy. This means the childcare market isn’t just socially important, it’s a defensive industry offering predictable returns and potential long-term growth.
Childcare properties are especially attractive because they tend to have long-term tenants, often with government-backed funding (childcare subsidy). Operators usually sign multi-year leases, which are structured with the tenant paying all (or a proportion) of the property’s outgoings in addition to rent. These outgoings can include costs such as rates, building insurance, maintenance, cleaning, and property management fees, the specifics of which are detailed in the lease agreement
The properties themselves are purpose-built, which means they’re not easily repurposed, adding a layer of security for property owners. In addition to this, centres are often located in high-demand areas, close to schools, transport, and family-friendly communities.
But there’s more to the story than just the buildings. Investing in the businesses that run childcare centres can also be rewarding. Childcare operators generate consistent income, and when managed well, they build strong reputations and loyal customer bases. Understanding how these businesses work, from staffing and compliance to educational outcomes, unlocks even greater value. That’s where Jarra Childcare Trust comes in.
Jarra Childcare Trust offers wholesale investors access to the childcare sector through a carefully managed national portfolio of childcare properties and operating businesses (Early Learning Collective).
Managed by Jarra, a specialist and experienced childcare developer having delivered more than 30 childcare centres with a variety of tenants, from small not-for-profits to large national and ASX-listed operators, our experience goes beyond property development and into business operations, giving us a deeper understanding of the crossover between the two aspects in childcare space. Our approach is focused on long-term sustainability, community impact, and strong governance. We believe that investing in childcare isn’t just good for your portfolio, it’s good for society.
If you’re looking to diversify your investments and want something that’s both predictable and meaningful, childcare is worth a closer look. It’s a chance to invest in the future, literally!
Click here to find out more about Jarra Childcare Trust and to download the IM.
