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.
