Child care centre for sale - Cairns

Child care centre for sale - Cairns details:

This purpose built 40 plus licenced centre has been establish for nearly three years in a growing North Queensland area. All centres take time to mature in terms of occupancy and this centre is no exception trading at approximately 48% occupancy.

The centre is operated by a full time director and is fully managed. Set on 2000 sq meters there is plenty of room for expansion as and when demand warrants. This is a solid return on investment that has not reached its full maturity.

Ideal as a starter premises or as an investment.

Childcare Centre Trading Results
	Annualised	YTD 2008	2007	2006
Income	$319,000	$203,492	$329,535	$404,365
Owner Operator Profit	$148,532	$80,016	$79,143	$53,505
Under Management	$108,290	$59,895	$39,143	$13,505

There are a number of purchasers that use a per place method of appraising the value of the childcare centre, in this case the asking price per place is $17,857 which we believe is very reasonable considering the location and the possibility of expansion.

As for a return on investment if you consider this proposition as “under management” then it is estimated the ROI is about 14.4% if you are an owner operator then the ROI is closer to 19.8%. An owner operator or an astute investor who is prepared to wait and grow the business will benefit greatly with capital growth in the freehold value and profitability.