East coast childcare centres collect c$50m

The Sherwood centre (outlined) sold prior to auction for a speculated price of over $8 million.

Four childcare centres offered as part of a bulk auction event sold today for a total of nearly $41 million.

In the priciest deal, a 20 month old complex, 318 Mona Vale Road, St Ives (pictured, top), traded for $15.9m on a four per cent net yield.

The vendor, Sydney based Hampton Property Group, paid $9.5m – a 5.7pc return – in early 2020, holding it in a single property fund.

With 98 places, it is tenanted to Orchard Early Learning which, with options, can stay until 2054.

It was promoted during construction in 2019 as being Australia’s first standalone, zero carbon emission asset of its type.

Lowest yield in Camperdown

In Camperdown, a 120-place asset rented to Guardian, traded for $10.3m at a 3.98pc yield, the lowest return of the centres offered today.

The three level complex was developed about 10 years ago out of a government owned ex-substation and warehouse.

It is land tax exempt (story continues below).

Also in New South Wales, a Heatherbrae asset, 20 kilometres north of Newcastle, traded for $5.55m – a 5.44pc yield.

Queensland assets

In Burleigh Heads – about 12 kilometres south of Surfers Paradise – 148 West Burleigh Road traded for $9.275m at a 4.21pc yield.

Opposite Stockland Burleigh Heads, the three year old complex is exposed to about 34,000 daily car movements.

It is licensed for 108 clients.

A fifth centre, which was scheduled to be part of today’s portfolio auction – 16 Thallon Street, Sherwood, in Brisbane’s south west – traded beforehand for a speculated price of over $8m (which would reflect a sub 4.67pc return).

Cushman & Wakefield’s Michael Collins and Tom Moreland worked on all the campaigns. Colleague Yosh Mendis co-marketed Camperdown, Heatherbrae and St Ives.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.