Buyer nabs childcare spot

A Melbourne investor has paid $6.01 million for a childcare centre at Seacliff.

The Brighton Rd centre was offered with a 15-year net lease to ASX-listed provider G8 Education, with four five-year extension options and a net annual income of close to $320,000.

The property comprises an “as new” purpose-built centre licensed for 84 places on a 2161sq m site.

Knight Frank’s Oliver Totani and Jack Dyson brokered the deal in conjunction with Burgess Rawson’s Adam Thomas and Natalie Couper.

Mr Totani said the property had attracted strong interest given its high-profile coastal location south of Adelaide.

“The strong sales result for the property reaffirms A-grade childcare centres are still on the agenda for astute investors,” he said.

“With much uncertainty over the topping out of interest rate levels, investors are keen to find certainty across covenant, tenure and income growth, and this G8 centre met all of those key criteria and more.”