Private investors have pounced on an offering of 12 childcare centres in New South Wales, Victoria and Queensland, with 11 of them selling in 10 days for a combined $43 million.
The centres, which were offered as part of Burgess Rawson auctions, sold on yields ranging from 5.4 per cent for a $4.9 million property in Caroline Springs, Melbourne, to 6.7 per cent for a centre in Murray Bridge, Adelaide, which changed hands for $1.5 million.
“We continue to experience high levels of inquiry for childcare assets, particularly in South Australia. Supply is simply not meeting the demand as yields continue to compress,” said Burgess Rawson director Adam Thomas.
“More than 1000 inquires were received for the 11 sales portfolio, from local investors and Asian markets.”
The highest price achieved was for a refurbished centre in Strathpine, north of Brisbane, operated by C&K Childcare on a new 15-year lease, which sold for $6 million on a yield of 5.9 per cent.
The vendors, Patricia and Stephen Vedelago trading as Nafru Pty Ltd, more than doubled their money, having paid $2.7 million just two years ago.
Mr Thomas said the childcare market in South Australia was attracting widespread attention, particularly from Melbourne investors looking for higher yields.
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Originally written by Larry Schlesinger, Australian Financial Review