Investors drop $35m on childcare centres
Investors have spent close to $35 million on childcare centre investments in recent weeks.
In the biggest deal, a 110 place Montmorency, Melbourne, asset traded for $7.5 million – a c5.5 per cent net passing yield after land tax.
Developed in 2020, leased to Nino Early Learning until 2035 (or 2055 with options), 59-61 Para Road found favour with a New South Wales based, Singaporean backed syndicate.
The deal comes a year after a failed campaign with a different agency, CBRE’s Marcello Caspani-Muto, Sandro Peluso, and Jimmy Tat bragged.
In Tasmania, a 106-place complex at 59B Amy Road, Newstead, an affluent suburb of Launceston, sold for $5.3m.
Also, 261 Haly Street, in Kingaroy, Brisbane, with 74 places able to be increased to 91, traded for $4.5m.
The agents who brokered these deals, Matthew Wright and Natalie Couper from Burgess Rawson, said they followed a portfolio auction where two G8 backed assets in suburban Melbourne fetched a total $8.8m, while a Goodstart Early Learning leased centre in Brisbane’s north Bray Park sold for $3.861m.
Meanwhile, Forte CRE’s Jai Sethi has sold a 46-place childcare centre in Sydney’s west Hoxton Park for $4.75 million.
With a lease expiring in 2028, 1-5 Bangalow Place was marketed for its reposition or redevelopment upside.
Instead, it is expected to asset will be retained in its present use.
“Many buyers are opting to purchase established, operational centres rather than undertake the cost and risk of development – and they are certainly willing to pay for that certainty,” the agent said.
The auction result – against an opening bid of $3.9m – reflects a 5.04pc yield.
It also prices each place at a high $103,260.
Hoxton Park is 38 kilometres from town.
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