Childcare Centre Boom to Roll on

Investors continue to pile into the Queensland childcare centre sector with expectations that yields will further tighten in 2022. Five premium childcare centre investments worth $21.81m have settled, with three initially selling under the hammer at a Burgess Rawson auction at the end of 2021 and two before the event. Burgess Rawson joint Head of Agency Queensland Andrew Havig said yields were holding firm. “The sector is surprisingly strong and if anything yields are sharpening,” he said. “The childcare sector is very well accepted and five years ago yields were in the 6-7 per cent range and they are now in the 4.5 per cent to 5 per cent range for quality tenants.” Transactions struck by Mr Havig and Natalie Couper were:

• Journey Early Learning Banyo, 382 Tufnell Rd – $4.66m (4.69 per cent yield);
• Toral Lodge Childcare Buderim, 6-8 Toral Drive – $5.43m (4.42 per cent);
• TG’s Childcare Urangan (Hervey Bay), 61 Miller St – $3.27m (4.84 per cent);
• Day One ELC in Deception Bay, 5-9 Monarch Drive – $3.7m (5.43 per cent) and;
• Petit Early Learning Marian (Mackay), 18-20 Bissett St – $4.75m (5.66 per cent).

Mr Havig said the quality childcare centres were sold to a range of local and interstate investors.