Hunters Hill childcare centre sells in a day
A Hunters Hill childcare has sold for a speculated $11 million the day after the agency sent the listing to its database and a fortnight before a public marketing campaign was set to start.
The one month old facility at 32 Ryde Road replaced two standalone homes which traded in mid-2018.
Now a 750 square metre, 76-place investment, it is leased to Little Zak’s Academy until 2031.
With options, the tenant can stay 20 years beyond then.
Knight Frank’s Demi Carigliano, Anthony Pirrottina and Alex McColl were the agents; the sale price – which they wouldn’t confirm – reflects a c4.5 per cent yield.
Their deal comes 11 months since Risland sold a North Ryde childcare centre on the ground floor of an apartment complex for $4.65m – a 6.5pc return.
In 2019, an Artarmon facility traded for $14.8m – setting a then national record for an investment of this type.
That price reflected a seven pc yield.
Little Zak’s Academy Hunters Hill
On 1047 sqm, the Hunters Hill asset includes outside learning areas and a 17-bay basement car park (story continues below).
The lease agreement will see Little Zak’s Academy’s rent increase a minimum of four per cent, per annum.
The buyer is Electrical City.
“We sent it to our database on a Monday and it had the deal done by Tuesday afternoon,” Mr Carigliano said.
“The strength of the covenant was one of the biggest drawcards, with a high-quality tenant for at least the next 10 years, providing a near guaranteed and steady income,” he added.
“It’s also in a prime North Shore location…and is just one of two centres in the suburb providing few competing places,” according to the executive.
“The property is just a short walk to Hunter’s Hill village, St Joseph’s College, bus and ferry stops”.
Mr Pirrottina said childcare centres had proven to be a secure asset over the course of the pandemic.
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