For decades, property investors thought in a few well-worn categories: residential, retail, office and industrial. Early learning rarely entered the conversation. That has changed. Childcare property investment has emerged as a distinct asset class with its own demand drivers, tenant profile and long-term characteristics, and developers who understand it are building purpose-designed centres rather than converting whatever space happens to be available.
Nexus Developments approaches early learning through its dedicated education vertical, building Montessori childcare centres under the Discovery Cove brand. Its current childcare pipeline spans two projects: Discovery Cove in Numurkah, designed for 100 children with a $4.5M value, and Eaglehawk Childcare near Bendigo, designed for 120 children with a $6M value. Together they represent a pipeline of 220 children across regional Victoria.
This article explains why early learning centres have become an emerging asset class, what makes a Montessori childcare property different to design and operate, and how Nexus Developments builds these centres to a standard that serves both children and the long-term durability of the asset. The aim is to give readers a grounded picture of why this sector deserves the attention it is now receiving.
What Makes Childcare an Asset Class
*A Discovery Cove Montessori childcare interior, designed around the needs of young learners.*
An asset class earns that label when it has demand fundamentals, income characteristics and risk attributes distinct enough to be analysed on its own terms. Early learning meets that test. Demand is underpinned by population growth, workforce participation and government support for early education, which together create a stable and growing need for places.
From a property perspective, a purpose-built childcare centre typically operates on a long lease to an operator, which produces a predictable income stream secured against an essential service. Essential-service tenants tend to be resilient through economic cycles because demand for childcare does not disappear when conditions tighten, which is part of what attracts investors to the sector.
Nexus Developments treats childcare property investment as a serious vertical rather than an opportunistic sideline. Its education work runs through Nexus Learning, which covers Montessori childcare under the Discovery Cove brand as well as the planned Wyndham Grammar School. That focus is what allows the company to build centres designed around the asset class rather than retrofitted to it.
Why Demand for Early Learning Is Durable
*Eaglehawk Childcare, a 120-place centre under construction near Bendigo.*
The durability of childcare demand comes from a combination of factors that rarely move in the same direction at once. Families need care so that parents can work; governments support early education because of its long-term social and economic returns; and the early years are increasingly recognised as formative for lifelong learning. Each of these supports demand independently.
Regional locations add a further dimension. In growing regional centres, quality early learning places can be in short supply even as families move in, which is precisely the gap the Nexus Developments childcare pipeline targets. Building where demand is real and undersupplied is the foundation of a sound centre, both for children and for the underlying asset.
This is why the company has located its current centres in Numurkah and near Bendigo rather than only in metropolitan Melbourne. Serving regional communities aligns with the Nexus Developments tagline, Building Sustainable Communities, Distributing Wealth, and it also reflects a clear-eyed reading of where childcare demand is genuinely durable.
The Montessori Philosophy and What It Asks of a Building
Montessori is not simply a brand applied to a childcare centre; it is an educational philosophy with real implications for how a building is designed. The approach emphasises self-directed learning, mixed-age groups, and carefully prepared environments in which children can choose and complete activities independently. The building has to make that possible.
In practice, a Montessori childcare property needs open, ordered spaces with accessible storage at child height, natural light, a strong connection to the outdoors, and furniture and fittings scaled to children rather than adults. The environment is treated as a teacher in its own right, which raises the design bar well above a generic care facility.
Nexus Developments builds its Discovery Cove centres to support this philosophy from the ground up. Designing for Montessori from the outset, rather than adapting a conventional layout, is what distinguishes a purpose-built early learning asset and is a large part of why these centres hold their value as childcare property investment.
The Prepared Environment
At the heart of Montessori is the prepared environment, a space ordered so children can act independently. Translating that idea into built form, with the right sightlines, materials and access, is a design discipline that Nexus Developments takes as the starting point for every Discovery Cove centre.
Discovery Cove, Numurkah
*Inside Discovery Cove Numurkah, a 100-place Montessori centre under construction.*
Discovery Cove on Quinn Street in Numurkah is a Montessori childcare centre designed for 100 children, with a project value of $4.5M, and is currently under construction. Numurkah is a regional town in northern Victoria, and a centre of this scale represents a significant addition to the early learning options available to local families.
The 100-place capacity is sized to the community it serves. Building a centre that matches genuine local demand, rather than over-scaling for a market that cannot fill it, is part of what makes a childcare asset durable. An occupied, well-run centre is a far stronger investment than an oversized one struggling to reach capacity.
As the flagship of the Discovery Cove brand, the Numurkah centre sets the Montessori design standard that Nexus Developments carries across its early learning work. It demonstrates that a regional location and a high-quality, philosophy-led building are entirely compatible.
Eaglehawk Childcare, Bendigo
*Eaglehawk Childcare, a 120-place Montessori centre serving the greater Bendigo region.*
Eaglehawk Childcare on Peg Leg Road in Eaglehawk is the larger of the two current centres, designed for 120 children with a project value of $6M and currently under construction. Eaglehawk is part of greater Bendigo, one of regional Victoria’s largest and fastest-growing centres, which supports a centre of this scale.
At 120 places, Eaglehawk reflects the demand of a larger regional catchment while still being built to the same Montessori-informed standard as Discovery Cove. The consistency between the two centres is deliberate: a recognisable standard of design and operation is part of what gives the Discovery Cove brand its value.
Eaglehawk also illustrates how Nexus Developments scales a model without diluting it. Increasing capacity from 100 to 120 children is a question of sizing and configuration, not of compromising the prepared-environment principles that make these centres work as both learning spaces and assets.
A 220-Child Pipeline and Why Scale Matters
Taken together, Discovery Cove and Eaglehawk give Nexus Developments a childcare pipeline of 220 children. That combined figure is more than the sum of two projects; it signals a deliberate, repeatable program in early learning rather than a single experiment in an unfamiliar sector.
Scale matters in childcare property investment because it spreads operational learning, strengthens the brand and demonstrates to operators and investors that the developer is committed to the asset class. A company building one centre is testing the water; a company with a 220-child pipeline across two regional locations is building a platform.
It also matters for communities. A pipeline of 220 early learning places is a tangible contribution to regional Victoria, expanding access to quality childcare in towns that need it. For Nexus Developments, the social and the commercial logic of the pipeline point in the same direction.
What Investors Look For in a Childcare Asset
*A purpose-built Montessori interior, the kind of asset investors increasingly seek in the childcare sector.*
Investors assessing childcare property investment look closely at a handful of fundamentals: the strength of the catchment, the quality and compliance of the building, the calibre of the operator, and the security of the lease. A weakness in any one of these can undermine an otherwise attractive centre, so the developer’s choices early on are decisive.
Purpose-built design is a recurring theme. A centre designed specifically for early learning, meeting regulatory requirements for space, safety and outdoor area, is more lettable and more durable than a converted building. This is exactly the standard Nexus Developments applies through its Discovery Cove centres, which is why they are positioned as long-term assets rather than short-term builds.
The company also brings the discipline of a larger developer to the sector. With a pipeline of more than $400M across 16 projects and governance partners including Colliers for market intelligence and Maddocks for legal and planning, Nexus Developments delivers childcare with the same rigour it applies across its other six verticals.
Where Childcare Sits in the Nexus Developments Portfolio
Childcare is one of seven sectors in which Nexus Developments operates, alongside residential communities, disability and medical care, mixed-use commercial, wealth funds, equity-based home building and project management. That breadth is relevant to childcare because it brings cross-sector capability to bear on early learning property.
The same teams that deliver residential and care projects bring planning, construction and ESG expertise to the childcare centres, including the company’s commitment to building to a 7 to 8 star NatHERS energy rating on new dwellings. A diversified developer can apply hard-won standards from one sector to another, which benefits the quality of the childcare assets.
Readers interested in how early learning fits the wider strategy can review the full set of developments on the All Projects page. It shows the 220-child childcare pipeline in the context of the broader ambitions of Nexus Developments across regional and metropolitan Victoria.
Frequently Asked Questions
Why is childcare considered an emerging asset class?
Childcare has demand fundamentals, income characteristics and risk attributes distinct enough to be analysed on its own terms. Demand is supported by population growth, workforce participation and government support for early education, while purpose-built centres typically operate on long leases to operators, producing predictable income secured against an essential service.
What childcare projects does Nexus Developments have underway?
Nexus Developments has two Montessori centres under construction under its Discovery Cove brand: Discovery Cove in Numurkah, designed for 100 children at $4.5M, and Eaglehawk Childcare near Bendigo, designed for 120 children at $6M. Together they form a pipeline of 220 children across regional Victoria.
What makes a Montessori childcare building different?
A Montessori building must support self-directed learning through a prepared environment, with open, ordered spaces, child-height storage, natural light, a strong connection to the outdoors, and furniture scaled to children. Nexus Developments designs its Discovery Cove centres around these principles from the outset rather than adapting a conventional layout.
Why does Nexus Developments build childcare centres in regional towns?
Growing regional centres often have genuine, undersupplied demand for quality early learning places. Building where demand is real and durable, as Nexus Developments does in Numurkah and Eaglehawk, produces stronger centres for both children and the underlying asset, and aligns with the company’s mission of building sustainable communities.
What do investors look for in a childcare property?
Investors assess the strength of the catchment, the quality and compliance of the building, the calibre of the operator and the security of the lease. Purpose-built design that meets regulatory requirements for space, safety and outdoor area is more lettable and durable, which is the standard Nexus Developments applies to its Discovery Cove centres.
About Nexus Developments
Nexus Developments is a leading multi-sector property development company based in Melbourne, Australia, with a project pipeline of over $400 million across residential, NDIS Specialist Disability Accommodation, Montessori childcare, education and commercial real estate. Founded by Bhupendra (Ben) Sethia — a 25-year industry leader and Founder Chairman of JITO Australia — Nexus Developments operates with institutional-grade governance, partnerships with Colliers and Maddocks, a 7-8 star NatHERS energy standard on every new dwelling, and a commitment to contribute more than 600 dwellings to the National Housing Accord.
Across Nexus Communities, Nexus Care, Nexus Learning, Nexus Commercial and the Nexus Wealth Fund, Nexus Developments delivers projects designed to compound long-term value for investors and communities alike. Whether you are an investor seeking exposure to Melbourne property development, a first-home buyer looking at Melbourne growth corridors, a family considering NDIS-accredited Specialist Disability Accommodation, or a landowner looking for a delivery partner, Nexus Developments has a pathway for you.
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Disclaimer: This article is general information only and does not constitute financial, investment, legal or tax advice. Investments in Nexus Wealth Fund products are available to wholesale and sophisticated investors as defined under the Corporations Act 2001 (Cth). Past performance is not a reliable indicator of future performance. Renders are artist impressions and indicative only.