As Jarra’s latest investment opportunity, Jarra Childcare Trust leverages a hybrid investment strategy to create a diverse portfolio, combining direct real estate ownership with co-investments in a national childcare business. In this interview style article, Jarra Directors Mike Cameron and Stefan Piruk share the story behind Jarra Childcare Trust.
Take us through Jarra’s journey and how it has evolved
Mike Cameron: Over the past 6 years, we’ve built a strong connection with the Australian childcare sector, both professionally and personally (with 6 children collectively!). Through Jarra, we have delivered more than 30 childcare centres nationally and worked with a wide variety of tenants, from small not-for-profits to large national and ASX-listed operators.
Stefan Piruk: 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. Since co-founding Bloom Early Education, we have been involved in building an operating business from the ground up, one that was closely aligned with our real estate strategy.
Tell us more about Jarra’s track record in the childcare space
Mike Cameron: Since 2019, Jarra has been at the forefront of childcare property investment, developing over 30 childcare centres and paying out more than $50 million to investors. Our portfolio has grown significantly, now managing approximately $100 million in assets, primarily in the childcare sector. We’ve experienced first-hand how access to high-quality operators, disciplined site selection, and informed capital structuring can significantly influence long-term asset performance in the childcare sector.
What inspired the transition to an owner-operator model?
Stefan Piruk: The childcare property market is becoming more difficult to navigate. Over the last few years, land and construction costs have risen more than 50%, while relative valuations (cap rates) have softened by 15–25%. At the same time, market rent has increased by only 30%, making it harder for traditional models to remain viable. Historically, operators have paid rent equivalent to 12–13% of revenue, and asking for more is simply not sustainable.
Mike Cameron: The turning point came in 2020 when we co-founded Bloom Early Education with Frits Grader, which allowed us to gain exposure to childcare business operations whilst also investing in the real estate. Bloom gained momentum, growing to nine operating centres across WA, with six more in the pipeline, giving us a powerful insight into the direct connection between childcare property and the operating businesses.
Q3: How does Jarra Childcare Trust fit into Jarra’s journey?
Stefan Piruk: The opportunity is an evolution of the dual investment strategy we have executed in developing childcare centres and expanding Bloom Early Education over the past 6 years. Our detailed industry experience informs the hybrid investment approach at the core of Jarra Childcare Trust, bringing together income-producing real estate with the growth potential of childcare operating businesses.
Q5: How does Jarra Childcare Trust’s dual investment strategy provide stability?
Mike Cameron: The traditional landlord-tenant model has challenges, especially in a fluctuating economy so by combining property with business operations, Jarra Childcare Trust aligns landlord interests with operators, creating long-term sustainability. This allows the Fund to offer better care, improved facilities and greater financial resilience. Wholesale investors benefit from a less interest-rate-sensitive model, which supports growth and projects strong returns.
Q6: What is the long term vision for Jarra Childcare Trust?
Mike Cameron: The Fund is currently open for investment, with a $50m capital raise and an established seed asset portfolio in place. Looking ahead, the goal is to expand the property portfolio nationally, alongside Early Learning Collective (the operating business in Jarra Childcare Trust), of which investors will own 1/3. In 5 years’ time, the investment strategy targets an exit via an IPO, as just one of the potential outcomes.
To find out more about Jarra Childcare Trust, and to download the IM, click here
