A Brisbane childcare centre investment listed this month could be the most expensive sold in Australia – smashing the record set last year for a Sydney centre, by some $14 million.
The Bowen Hills complex, three kilometres north east of the Queensland capital, is expected to trade for more than $35 million.
It forms part of a $150 million-plus portfolio of seven investments on Australia’s east coast offered for sale last week by husband and wife childcare operators and developers, Mike Wu and Shan Kuo, via CBRE.
Two Melbourne assets – in Box Hill and Hawthorn (pictured, above) – were also put to the market.
Each of these Victorian properties would also be record-breakers, with price tags of $24 million.
The highest price paid for a childcare centre investment was made last March when a 210-place Artarmon facility traded for $21 million, according to CBRE Research.
Coincidentally, the record price for a childcare centre investment this calendar year was also struck in Artarmon – with 60 Dickson Street fetching $14.8 million – as we reported here.
Australia’s $35 million-plus childcare centre
The Bowen Hills facility at 45 Folkestone Street (pictured, top and above) is licensed with 230 places.
The multi-building and multi-storey complex, with 3103 square metres of area and 31 at-grade car parks, occupies a 4595 sqm plot at the south west corner of Edmonstone Road.
Bowen Hills train station is walking distance from the plot as is the spaghetti road junction connecting the Inner City Bypass with Airport Link Road.
Fully leased to Avenues Early Learning (a company controlled by the vendors), the investment earns a starting annual rent of $1.7 million.
The occupier also picks up all outgoings including Goods and Services Tax.
On that basis, it is expected to trade on a net effective yield of 5 per cent or less.
Mr Peluso said the Bowen Hills investment also offers substantial income tax depreciation benefits of approximately $2.7 million.
The $150 million -plus portfolio
The Bowen Hills property is the most valuable within a landmark portfolio of seven properties listed last month as a whole, or individually.
The other assets, all offered with a leaseback, are:
- 239 Pittwater Road, Manly, New South Wales;
- 757 Station Street, Box Hill, Victoria – a four level complex;
- 555 Glenferrie Road, Hawthorn, Victoria (the former Hawthorn Receptions site);
- 624-630 Old Cleveland Road, Camp Hill, Queensland (pictured, right, a former church acquired from the Uniting Church in 2013);
- 24 Southgate Avenue, Cannon Hill, Queensland;
- 488 Jacksons Road, Sunnybank Hills, Queensland.
Mr Wu and Ms Kuo are building what will be Australia’s biggest childcare centre – with 348 places – in South Melbourne.
The pair are also refurbishing Sydney’s heritage protected former Drummoyne Reservoir into a Little Lane Learning facility.