Childcare centre sold
An investor has paid $8.8m for a Robina childcare centre operated by a major national group that could keep paying rent until 2066.
The Queensland investor has bought the 19-year-old Papilio centre from the tenant, Affinity Education, at a Burgess Rawson Brisbane auction.
Natalie Couper, a Burgess Rawson childcare property specialist, yesterday said that the auction was hotly contested, with 44 bids lodged and involved contenders from three states.
“The childcare sector is a highly regarded investment class that is supported by the government,” Ms Couper said.
She added that one of the attractions of the Robina property was annual rent increases based on whichever was the greater of the consumer price index or 2.5 per cent.
The auction win gives the buyer annual net income of $477,000 and a 5.43 per cent return on their investment.
Affinity holds a lease on the Papilio centre until 2036, with three 10-year options.
Ms Couper, who marketed the property with colleague Adam Thomas, said the centre, licensed to take 122 children, was on ‘a good chunk’ of land which offered a redevelopment option down the track.
The 60 Investigator Drive centre is on a 2294sq m site with a special-purpose zoning and also has a long frontage to Matterhorn Rd.
Affinity, owned by private equity group, has more than 200 childcare and other education centres across Australia.
It bought the Robina centre for $7.25 million in late 2020 from Oxanda a company linked to former banker Adrian Fonseca and wife Nancy.
The couple, via a super fund, bought the centre from receivers for $3.775m in 2017, improved it, and a year later moved it into Oxanda at $5.67m.
Affinity has bought Oxanda centres previously and a year ago acquired a parcel of 12.
Oxanda, which earlier sold 19 centres to listed Gold Coast group G8 Education for $27m, bought the Papilio centre from receivers. The 60 Investigator Drive centre is one of five on the Gold Coast and one in Brisbane put on the market after a funder moved on owner Preschool Services Australia, associated with Karen Williams.
The company developed the property on a site bought from Robina Land for $802,900 in 2003.
Other Preschool Services Gold Coast centres that were put in the hands of receivers were located at Merrimac, Maudsland, Upper Coomera, and Nerang.
A property owned by Ms Williams at 76 Alison Rd, Boonooroo Park, remains under her control.
The childcare sector is a highly regarded investment class that is supported by the government.