Fund manager divests Logan childcare centre
Clarence Property has sold a childcare centre held three years.
Leased to Harmony Early Learning, the outskirt south east Brisbane complex, in Bahrs Scrub, fetched $6.51 million – a 5.8 per cent yield – from a local investor.
The Lennox Head based fund manager paid $6.81m for the then-new asset; on 4671 square metres, it contains 997 sqm, licensed for 125 children.
The initial lease agreement ends in 2036 but with options it can stay until 2061.
“We were able to work closely with this buyer who has been active in the childcare market to secure two childcare assets for them, totaling $14.11m,” CBRE’s Harrison Coburn, who marketed 5 Bahrs Scrub Road, Bahrs Scrub, for Clarence, said.
“They were attracted to the significant depreciation benefits of these near-new assets, their strategic location in high growth corridors along with their high occupancy,” he added.
“The competitive bidding demonstrated there is strong appetite in the sub $10m price range, with six formal offers presented on the expressions of interest close,” according to the executive (story continues below).
The buyer was chosen for offering unconditional terms.
Elsewhere in Brisbane recently, childcare centres at Kallangur and Ripley – the latter also offered by Clarence – sold all up for $26m.
“We expect new, high quality childcare investments in south east Queensland to remain highly sought after with opportunities decreasing due to ongoing feasibility challenges faced by developers,” Mr Coburn said.
In the Logan municipality, Bahrs Scrub is 40 kilometres from Brisbane’s CBD and a little more than that north west of the Gold Coast’s Surfers Paradise.
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