Geelong childcare centres fetch $6.94 million
Two childcare investments in Geelong’s south sold for a total of $6.94 million at a Burgess Rawson portfolio auction on Wednesday.
In the biggest deal, a modern early learning centre in Leopold (pictured top and below), traded for $4.79 million.
Leopold Early Learning at 688 Bellarine Highway, a 2392 square metre site with a 776 sqm, 114-place facility earns annual rent of $295,645, with the tenant paying Goods and Services Tax and outgoings.
On this basis, the investment is exchanging on a 6.17 per cent net passing yield.
Natalie Couper and Adam Thomas were the marketing agents.
The property was offered with a 15 year rental agreement to the occupier which, with options, can stay at the site until 2054.
The Leopold Primary School is about 500 metres away, while Coles and Kmart outlets are less than half that.
Leopold is about seven kilometres south east of Geelong.
In Grovedale, seven kilometres south of Geelong, Ms Couper and Mr Thomas also sold a modern 95-place facility at 189-195 Torquay Road (otherwise known as the Surf Coast Highway), leased to Evolve Early Learning and Kindergarten.
The $2.15 million sale price reflects a 7.56 per cent passing yield.
The Geelong deals come in the same week Mike Wu and his wife, Shan Kuo, the operators of Little Lane Learning and Avenues Early Learning Centre, listed for sale seven owner-occupied investments – the $150 million-plus portfolio Australia’s largest ever, specifically for childcare investments.
