Childcare investments

Tuesday 16 February 2016

Written by The Australian Jewish News

Three childcare investments will be up for grabs at Burgess Rawson’s next Investment Portfolio Auction, on Wednesday 24 February at Crown Casino, starting at 11am. The centres are found in Cranbourne North, the Geelong suburb of Newtown, and Rockhampton in Queensland.

“These childcare investments have long and secure leases to successful childcare providers,” selling agent Adam Thomas said, adding that the agency expects yields in the vicinity of 6.5 to 7.5 per cent, with expected pricing starting at $2.5 million. “Investor appetite for childcare assets is unlikely to slow down anytime soon. In 2015 Burgess Rawson sold 32 childcare centres with a total value in excess of $78 million,” he said.

The agents say that the Newton property is located on the corner of Aphrasia Street and Claremont Avenue, a high-profile corner directly opposite Geelong College, within one of Geelong’s most exclusive residential zones. Licensed for 92 places and at almost 100 per cent occupancy, the centre is leased to Bambini ELC, a boutique provider with six centres servicing affluent Melbourne suburbs.

The Cranbourne North centre is found at 20s Paxford Drive and is leased to Eclipse Early Education, a proven childcare provider with six centres currently in operation and a further 17 facilities scheduled to be opened by the end of 2016. Strategically located opposite the Woolworths-anchored Avenue Village shopping centre, the new 647-square-metre facility is licensed for 106 places.

Located at 175 Frenchville Road, the Queensland centre is leased to Natural Wonders Early Learning and is licensed for 96 places. The agents say that it is positioned in Rockhampton’s rapidly expanding northeast growth corridor, within an established education, medical and residential precinct.