Location location: two Queensland childcare centres head to auction

Tuesday 7 May 2019

If location is everything, then two Queensland childcare centres to be auctioned this month at Burgess Rawson’s latest Investment Portfolio Auction could be hard to top.

The first, leased to Sanctuary Early Learning in Buderim on the Sunshine Coast, is ideally positioned, directly opposite an IGA anchored shopping centre and just 200m from a McDonald’s restaurant.

But its appeal is soon set to grow further, with a new Coles-anchored shopping centre directly opposite due to be completed in the coming months.

Licensed for 90 long day care places, the brand new, purpose-built centre at 140 Jones Rd occupies a substantial 2643sqm corner site and is leased to Sanctuary Early Learning for 15 years. It currently returns $247,500 plus GST in annual rent, with 3% annual increases plus ‘ratchet’ provisions and the tenant to pay all outgoings, including land tax.

Burgess Rawson childcare specialist Natalie Couper, who is marketing the property with Adam Thomas, said childcare centres rarely come better located than the Buderim property.

“As far as childcare centres go, it’s position-perfect,” Couper said.

“It’s surrounded by high quality residential estates, and is only minutes from the heart of both Maroochydore and Mooloolaba. Being a new construction, you’ll also be able to take advantage of significant tax saving depreciation benefits.”

Another childcare centre at the gateway to Port Douglas will be auctioned the same day, offering a long lease to an experienced national provider.

The modern Petit Early Learning-operated asset has a desirable 15-year triple net lease with the tenant responsible for all outgoings including insurance, maintenance, repairs (capital & structural) plus multiple holding land tax. The lease also includes a minimum 2.5% annual rent increase plus ‘ratchet’ provisions.

The high-profile 2,663 sqm site at 507-511 Davidson Street sits alongside the Captain Cook Highway, on the key tourist route from Cairns.

The childcare centre is licensed for 88 long day care places, is currently leased at $197,877 plus GST and outgoings.

Couper said childcare is well and truly back on investors’ radars and with a number of Federal Election commitments set to benefit operators and the industry as a whole, owners of childcare-leased properties are certain to enjoy a position of strength in the coming years,” she said.

The Buderim and Port Douglas childcare centres will be auctioned at Burgess Rawson’s Investment Portfolio Auction at Crown Casino’s River Room at 11am on Wednesday, May 15.

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.