Investors spend $24.3m on childcare centres

Six childcare centre investments sold at auction today – making seven for the week.

In the biggest revealed deal, a Throsby complex, north of Canberra, traded for $7.25 million.Completed in late 2019, it returns annual net rent of $454,300 ex-GST.

In Melbourne, a Mount Martha property traded for $6.3m and the lowest yield – 4.86 per cent.

At 4 Watson Road, on the south east corner of Langrigg Avenue, that 1004 square metre site, a block from the beach, until recently accommodated a house. It contains a two floor, 706 sqm complex licensed for 80 clients. With options the occupier, Little Acorns, can stay until 2049.

Elsewhere in Victoria, a G8-backed purpose-built complex at 54-56 Ray Street, Castlemaine, collected $1.815m – a 5.87pc return.

A Bairnsdale childcare investment traded for a similar amount ($1.72m) but lower yield (5.56pc).

A fourth facility, The Cottage Ashmore, four kilometres west of Surfers Paradise, also sold at auction today – for $2.59m. It earns annual net rent of $131,790 ex-GST.

Burgess Rawson’s Natalie Couper, Doug Doyle and Jamie Dewe marketed these five properties. They sold another investment of this type for an undisclosed price; in Melbourne’s Truganina, it collects annual rent of $398,778 and could be exchanging for c$8m if the price reflected a sub-five pc yield.

SOURCE: Marc Pallisco, Real Estate Source