Clarence divests near-new childcare centre
Clarence Property has sold a Brisbane growth corridor childcare centre it completed early last year.
The 154-place asset at Ripley, near Ipswich, found favour with a local – their maiden investment in the sector – for $7.6 million, a 5.4 per cent net passing yield.
With 977 sqm it is leased for an initial 15 years to Little Locals Early Learning Group which occupies seven other south east Queensland facilities.
The incoming owner will be able to claim depreciation benefits too.
The 3367 sqm site at 1 Brooking Rise, also fronting busy Ripley Road and Tuckeroo Street is only going to get higher profile with several major builders behind local estates, amongst them, Goldfields, Sekisui House and Stockland – the latter which bought a 700ha site in 2020 from a company chaired by Gavin Bunnings, whose family established the eponymous hardware chain.
Clarence paid $1.65m for the land in 2021 then obtained a permit for the childcare centre.
It sold slightly above the ‘as-if-complete’ valuation estimated prior to construction; CBRE’s Harrison Coburn was the agent.
The deal comes 18 months since the Lennox Head based fund manager sold the Gold Coast’s Ormeau Marketplace for $34m – a 5.24pc return – a rise on the $29m it paid three years earlier.
In early 2022 meanwhile it outlaid $30m for an industrial development site in Heathwood, in Brisbane’s south.
Little Locals, low yield
Four other parties contested for 1 Brooking Rise following an off-market campaign.
“The buyer’s short due diligence and timeframe allowed us to move forward and exchange congrats swiftly, which is a common theme we are seeing in this sector,” Mr Harrison said.
“Whilst tenant operator demand is still high, we have witnessed a significant decrease in the number of new centres coming online given the rising construction costs we have experienced over the last 12-24 months,” he added.
Last October fund manager Chauval Capital Partners sold a new asset of this type across town at Kallangur, for c$12m – a circa five per cent return.
Licensed for 206 clients, it also traded to a local.
CBRE again, via Sandro Peluso, Jimmy Tat, Marcello Caspani-Muto, Michael Hedger and Will Carman, were the agents.
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