A local investor outbid southern interest to snap up under the hammer a newly built inner city childcare centre in Woolloongabba.
The property at 45 Maynard Street, sold for $5.805 million at a Burgess Rawson Melbourne auction.
Jamie Dewe, who marketed the property with Glenn Conridge, Natalie Couper and Adam Thomas, said ASX-listed Think Childcare – which owns and manages 50 centres around Australia – has a 20-year lease with two 10-year options on the building.
“It was bought by a local investor who has owned a number of shopping centres in the past and this is their first foray into childcare,” he said.
“They had been looking around for a while. They’ve been to our auctions and been bidding a number of times.
“This was one they got an they’re very happy about it.”
The building, which is constructed in the Queenslander style, has a net lettable area of 1034 sqm and is on a 1426 sqm site.
It has approval for 93 long day care places.
It has an annual rental increase to CPI plus 1 per cent, and the tenant pays all the outgoings plus 2 per cent management fee.
The sale realised a 5.93 per cent yield.
According to CoreLogic the property was bought by Metrodale Enterprises from the developer Bfcp Pty Ltd.
Mr Conridge said there were bidders from Brisbane, Melbourne and Sydney.
“Everyone likes a metropolitan asset if they can buy one and this one in Woolloongabba was impressively close to the city in the minds of southern investors,” he said.
“It was a set-and-forget asset and the fact it was brand new and a very well presented property was a major plus as was the 20-year plus lease and annual rent rises.”
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Written by Chris Herde, Brisbane Courier Mail