Childcare Centre Sells at Sub Three Per Cent Yield

A Central Coast childcare centre has traded for $7.5 million setting a state record low 2.99 per cent yield for an asset of this type.

The 72-place complex on 2009 square metres at 4 Nowack Avenue, Umina Beach, is tenanted to Affinity Education which, with options, can stay until 2025.

Burgess Rawson’s Keiran Bourke and Michael Vanstone said the facility enjoys a long history of 95 per cent occupancy – and has a waiting list.

The agency also yesterday sold a Sydney childcare centre – 49-51 Boomerang Street, Turramurra – for $8m, reflecting a 3.3 per cent return.

Sixteen suitors contested for that property, which traded for 30 per cent ($1.85m) over reserve.

The assets were offered as part of a three day bulk auction event in which 49 out of 54 assets traded for a total of $189m.

The average sale price was 13 per cent over reserve; the blended yield was 4.7 per cent.

Nearly 550 buyers were registered.

Yesterday we reported six properties in the portfolio, offered with leasebacks, sold for a combined $30.35m.