Affinity Education on Fraser Coast to attract big interest
Childcare’s proven status as an essential service is set to weigh in its favour again as investors vie for a prime opportunity on Queensland’s Fraser Coast.
An early learning centre at Maryborough, just south of Hervey Bay, will be auctioned this month amid billions of dollars of Federal Government that have supported the industry through the COVID-19 pandemic.
Burgess Rawson childcare specialist Adam Thomas said the level of financial support that childcare was continuing to receive nationally was indicative of the industry’s importance to Australia’s economy.
“Childcare has been the only sector to receive industry-specific funding and support throughout the COVID pandemic,” Mr Thomas said.
“As a result, it has essentially been future-proofed and has confirmed its status as one of the best long-term investment prospects in today’s market.”
Investors can tap into that strength when a superbly leased centre at 30 Regent Street, Maryborough is auctioned at Burgess Rawson’s Investment Portfolio Auction event on October 28.
The property features a secure 15-year triple net lease to 2028 to major national operator Affinity Education, with two further five-year options.
This purpose-built centre is licensed for 85 long day care places, the asset’s leasing structure means the tenant pays all outgoings, including maintenance costs, insurances, management fees, rates and multiple holding land tax. It also includes 2.5% annual rent increases, along with ratchet provisions, which ensure the rent never decreases at the commencement of each option period.
The 3115sqm site is positioned close to Maryborough Town Centre and Station Square Shopping Centre and returns $148,732 per annum plus GST.
Mr Thomas said the property also benefited from its location on the Queensland coast.
“Maryborough is an essential part of the area known as the Fraser Coast. It is located at the gateway to Hervey Bay and Fraser Island, which is both a key tourism destination and a popular area for families,” he said.
Childcare’s popularity as an investment was borne out at recent Burgess Rawson auctions, with a facility at Pakenham in Victoria trading on a 5.93% yield, while another at Rockhampton sold at just over 6%.
No. 30 Regent Street, Maryborough will be auctioned at Burgess Rawson’s Portfolio Auction event at 11am AEDT on Wednesday, October 28.