Childcare centre sells at sub three per cent yield

A Turramurra childcare centre sold for 30 per cent over reserve.

A Central Coast childcare centre has traded for $7.5 million setting a state record low 2.99 per cent yield for an asset of this type.

The 72-place complex on 2009 square metres at 4 Nowack Avenue, Umina Beach (pictured, top), is tenanted to Affinity Education which, with options, can stay until 2025.

Burgess Rawson’s Keiran Bourke and Michael Vanstone said the facility enjoys a long history of 95pc occupancy – and has a waiting list.

The agency also yesterday sold a Sydney childcare centre – 49-51 Boomerang Street, Turramurra – for $8m, reflecting a 3.3pc return.

Sixteen suitors contested for that property, which traded for 30pc ($1.85m) over reserve.

The assets were offered as part of a three day bulk auction event in which 49 out of 54 assets traded for a total of $189m (story continues below).

Seven investments sold mid-campaign.

The average sale price was 13pc over reserve; the blended yield was 4.7pc.

Nearly 550 buyers were registered.

Yesterday we reported six properties in the portfolio, offered with leasebacks, sold for a combined $30.35m.

Subscribe to our newsletter at the bottom of this page

Share or Recommend article

Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of