An entry-level price point will sell one of Bairnsdale’s most popular childcare centres
The property at 382 Main Street features a 17-year, triple net lease to 2033 to leading operator Evolve Education, with two further five-year options.
It will be put up for grabs at commercial agency Burgess Rawson’s latest Investment Portfolio Auction on February 24.
With the centre’s wait list already extending into 2022, Burgess Rawson childcare specialist Adam Thomas said it was a very safe long-term proposition for commercial property investors.
“The centre is at very high occupancy and has the security of an ASX-listed tenant, with Evolve dual listed on both the Australian and New Zealand stock exchanges,” Mr Thomas said.
Occupying a highly-exposed 1024sqm site with more than 20,000 vehicles passing daily, the property is strategically positioned just moments from Bairnsdale Primary School, the town centre and East Gippsland Regional Hospital.
Meanwhile, its coveted triple net lease structure sees the tenant pay all outgoings, including capital and structural maintenance, insurances, rates, management fees and single holding land tax.
The lease also includes ratchet provisions, ensuring rental growth at market review.
Currently returning $95,640 plus GST in net annual rent per annum, price expectations for the property are between $1.3-$1.4 million, with buyers also eligible for the 50% stamp duty concession on regional assets.
Mr Thomas said regional childcare’s strong run was poised to continue, with commercial property investors drawn to the potential for higher yields.
“We are certainly seeing a shift to regional destinations, given the higher yields on offer, and it’s been further accelerated by the flow-on effects of Melburnians seeking a tree change after Victoria’s extended COVID lockdown,” he said.
Burgess Rawson’s 142nd Investment Portfolio Auction will be held at Crown Casino in Melbourne from 11am on Wednesday, February 24.