THE $3.375 million sale of a Rutherford childcare asset before its scheduled auction shows assets of its kind remain popular for commercial investors, according to one of the selling agents.
A NSW buyer bought the property at 125 Grand Parade at a yield of 6.13 per cent.
The property has a site size of 4230 square metres and has a new 20-year lease to established childcare provider Go Kindy Early Education plus further options.
It was marketed jointly by Burgess Rawson Sydney and Colliers International. Burgess Rawson NSW sales executive Michael Vanstone said the property’s sale showed childcare assets continue to be Australia’s strongest commercial property asset class.
He said Burgess Rawson has recorded more than $220 million worth of childcare sales throughout 2017 alone.
“Just three months into the year, it is clear childcare assets are certainly not at risk of losing their popularity amongst investors, with this property’s sale just one of four childcare properties that sold under the hammer at our Sydney portfolio auction,” Mr Vanstone said.
“Childcare investments are uniquely positioned for ongoing government support due to a focus on getting parents back into the workforce and providing better access to childcare options.
“With the popularity of childcare assets and this property’s prime Rutherford location within the expanding suburb of Maitland, an area fuelled by extensive residential, industrial, and commercial developments, it came as no surprise that the sale attracted a strong price point.”
View the property here.
To find out more about the properties in our portfolio, and how we can help you with sales, leasing and property management services, please contact us.
Burgess Rawson’s next portfolio auction events will be held on Tuesday 8 May at Doltone House Sydney, and Wednesday 9 May at Crown Casino Melbourne – view the portfolio here.
Originally published in the Newcastle Herald