Demand for ECEC freeholds still solid latest Burgess Rawson auction shows

Early childhood education and care (ECEC) real estate and business broker Burgess Rawson has completed its first auction campaign of 2023 with four centres, three of which recorded yields in the mid to low 5.00 per cent range.

Adam Thomas, Managing Director QLD and Partner at Burgess Rawson, said “We are very pleased with the performance of the child care sites presented in our February campaign.”

“2023 is expected to be an important year for the child care sector. Not only are we seeing better than expected demand for early learning right now, we will also see a step change in affordability introduced in July 2023 which will support demand further.”

“The fundamentals for the sector remain stronger than ever, and more than enough to mitigate lingering concerns around the trajectory of interest rates.”

Burgess Rawson’s 158 the portfolio auction was held across three locations on the 21st, 22nd and 23rd of February. The following results were recorded:

Sydney Auction 21st February 2023:

Lake Cathie, NSW – 90 place centre leased to Oz Education sold for an undisclosed sum.

Melbourne Auction 22nd February 2023:

Baldivis, WA – 65 place centre leased to The Family Tree sold for $3.485 million at a yield of 5.04 per cent.

Seacombe Gardens, SA – 104 place centre leased to Guardian Childcare & Education sold for $6.979 million at a yield of 5.5 per cent.

Brisbane Auction 23rd February 2023:

Burpengary, QLD – 100 place centre leased to Imaginarium Early Learning sold for $6.055 per cent at a yield 5.28 per cent.

“As we start making preparations for our next portfolio auction campaign, commencing in Sydney on 28 March, we anticipate investors to continue to build. Early signs of a return of overseas investors to the Australian market should continue to underwrite interest going forward,” Mr Thomas added.

The full suite of results from the auction campaign can be viewed on Burgess Rawson’s website.