Developing a child-care centre

Discussion in 'Development' started by ACH123, 7th Feb, 2020.

Join Australia's most dynamic and respected property investment community
  1. ACH123

    ACH123 Active Member

    Joined:
    7th Jun, 2019
    Posts:
    33
    Location:
    Gosford
    Hi - I own a site in the central coast and would like to develop a child care centre on it in the future.

    Putting this question out to anyone with experience in this field and hope I can get some general advice on the process for this.

    Cheers,
     
  2. Anthony416

    Anthony416 Well-Known Member

    Joined:
    14th Dec, 2015
    Posts:
    519
    Location:
    Sydney
    You probably already know some of this but, certain sqm per child for indoor space and certain sqm per child for outdoor space, may need acoustic and traffic reports, staff parking and drop off considerations, specialist landscape designer recommended.
     
    Terry_w likes this.
  3. ACH123

    ACH123 Active Member

    Joined:
    7th Jun, 2019
    Posts:
    33
    Location:
    Gosford
    Thank you for the reply Anthony. I am a town planner myself. I am aware of all the DA process and the guidelines.

    However, I am not very knowledgeable in terms of the development process. I'm hoping to rent the building out to a childcare provider. Any guidance on where to start?

    Many thanks.
     
  4. UrbanPlanner

    UrbanPlanner Well-Known Member

    Joined:
    20th Jul, 2015
    Posts:
    52
    Location:
    Perth
    A lease with a child care operator is step one. Some will prepare the plan for you to ensure it suits their requirements. At the very least, canvass the market for operators to get a sense for who, if anyone, is interested and then delve deeper. Some will pay much higher rents, but it is commensurate with the specification they demand. No point spending $1.5-2.5m building a building that doesn't match their specification.

    These guys expect full turn key product, so the level of spec can shift the needle on the feaso dramatically - they simply bring in toys and furnish and are good to go. Leases are based on $XX per place[kid] as well and not sqm.

    I'd start by speaking to a local commercial leasing agent, and they can canvass the market for you and should be able to help guide you.
     
    ACH123, Sackie, Archaon and 5 others like this.
  5. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    24,340
    Location:
    Sydney or NSW or Australia
    You'll have to do the hard yards (or engage an agent) to lock in a tenant and agree a design before taking it out for finance (as per @UrbanPlanner).

    Or you might do a long term ground lease only with the operator and let them build as per @Beano.
     
    ACH123 and Beano like this.
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,004
    Location:
    Perth
    A commercial leasing agent should be able to give some advice on the appetite for the area - you would struggle to find a tenant if there is already plenty in the area etc. It's also best to build to a client's needs rather than guess what they want.

    So it's a little circular but sort of
    1. interview some commercial leasing agent and find one you like
    2. get them to find you a tenant and they will say they want xx places and they tend to pay per child/place not per sqm (well it's the case in Perth) and they will let you know what requirements they have
    3. do feasibility based on those numbers
    4. lock them in with a lease that is subject to DA and construction times
    5. apply for DA
    6. use the lease to help get construction funding
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    10,004
    Location:
    Perth
    oops started typing then got distracted and by the time I sent it @UrbanPlanner wrote what I was thinking
     
    ACH123 and Scott No Mates like this.
  8. ACH123

    ACH123 Active Member

    Joined:
    7th Jun, 2019
    Posts:
    33
    Location:
    Gosford
    Thanks for all the advice guys
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    24,340
    Location:
    Sydney or NSW or Australia
    Better yet, you might contact a business broker who specialises in childcare centres. Probably closer to the target market than other agents.
     
    Beano and wylie like this.