Burgess Rawson’s June portfolio auction sees robust demand for ECEC properties
Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, has completed its fourth portfolio auction of 2021 in which six centres were offered for sale, all of which found buyers, and a G8 Education tenanted property in Victoria achieved a cycle low yield of 4.39 per cent.
“For the fourth auction in a row this year we have seen strong demand for ECEC properties. All six of the properties offered found buyers, with all four of the Victorian ones achieving sub 5.0 per cent yields and a property in Ocean Grove tenanted by G8 Education achieving an extraordinary 4.39 per cent.” Burgess Rawson Director Adam Thomas said.
“The combined value of all six properties was $34 million, a substantial amount that once again demonstrates that properties housed by essential service tenants with long leases and strong land values are still very much in demand for investors.”
The auction results were as follows:
- G8 Education Ltd, Ocean Grove, VIC (95 licence place centre) sold for $3.3 million at a yield of 4.39%
- Evolve Education Group, Glen Huntly, VIC (81 licence place centre) sold for $6.905 million at a yield of 4.40%
- Gumboots Early Learning, Sunbury, VIC (112 licence place centre) sold for $6.11 million at a yield of 4.94%
- Elements Childcare and Early Learning, Belmont VIC (81 license places) sold for $7.6 million at a yield of 4.99%
- Genius Early Learning, Hamilton Hill, WA (99 license place centre) sold for $5.08 million at a yield of 5.50%
- Genius Early Learning, Toowoomba City, QLD (130 licence place centre) sold for $5.0 million at a yield of 5.96%
“As we approach the midpoint of 2021 it is evident that the strong start to the year has been more than sustained throughout the first half and absent any big shifts in monetary policy should create a solid foundation for the rest of 2021.” Mr Thomas said.