Australia’s best childcare assets brought to market
A pair of Melbourne childcare centres with claims as some of the best ever to be brought to market will be front and centre at Burgess Rawson’s upcoming Investment Portfolio Auction.
The properties at Pascoe Vale South and Wantirna South feature stunning facilities coupled with exceptionally strong investment credentials, marking them as highly desirable opportunities for commercial buyers.
Both properties feature 15-year net leases to leading childcare providers, with two further 10-year options to 2056 and attractive 3.5% annual rent increases.
They also include landlord-friendly net lease terms, with the tenants to pay all outgoings including land tax, and ‘ratchet’ provisions at market review, guaranteeing rental growth.
Each centre will be sold through Burgess Rawson’s Investment Portfolio Auction on Thursday, November 11.
Leased to high-end operator Only About Children, the Pascoe Vale South centre at 38A Coonans Road has traded at 100% occupancy for more than two years, with 136 long day care places.
The high profile 2731sqm site is positioned just metres from Citylink and in a major education precinct, with 13 schools inside a 2km radius, and returns a net annual income of $546,324 plus GST.
The Wantirna South centre at 1342 High Street Road occupies a prominent 2476sqm corner site only moments from EastLink, with approval for 140 long day care places and currently enjoys 100% occupancy.
Leased to Advance Childcare and close to The Glen Shopping Centre, the multi-level property has 15 schools within 3km and returns annual net rent of $562,380 plus GST.
Burgess Rawson Head of Agency and childcare specialist Adam Thomas, who is marketing the property with Natalie Couper and Zomart He, in conjunction with Vinci Carbone’s Joseph Carbone and Frank Vinci, said childcare real estate did not come any stronger.
“These are arguably some of the best childcare centres ever to be brought to market,” Mr Thomas said.
“You’ve got two incredibly strong trading tenants and businesses. They’re premium national tenancies with a strong history of occupancy and performance that underline the long-term security of each asset.”
Mr Thomas pointed to the increasing popularity of the childcare property market throughout the COVID-19 pandemic as an indication of its ongoing investment potential.
“Billions of dollars have been injected into the industry since early 2020 by both Federal and State governments, on top of what was already a very well-supported sector,” he said.
“Childcare remains critical to the economy, making it both a very safe yet high-performing investment class.”
Burgess Rawson’s Investment Portfolio Auction will be held at 11.15am AEDT on Thursday, November 11.