Kelso childcare centre goes under the hammer for $2 million
THERE was “spirited bidding” before a Kelso childcare centre sold for $2.01 million at auction recently.
Nurture One Kelso Children’s Centre at 52 Kabbera Boulevard was sold at commercial real estate agent Burgess Rawson’s first flagship portfolio auction of the year.
Burgess Rawson childcare specialist Michael Vanstone said the 1825 square metre, dual childcare facility is tenanted to the “largest ASX-listed early education provider, G8 Education, on a rare triple net lease to 2026 with the option of extending to 2031”.
“The 82 LDC [long day care] licensed centre will deliver an annual net income of $128,682 plus GST to the new owner and the tenant is responsible for all outgoings, including structural and capital maintenance, insurance and rates,” he said.
He said commercial property investors “are acutely aware of the benefits of purchasing a commercial property leased to an established childcare operator”.
“Given the current interest rate turmoil, more and more people will look to the property market for stable and secure investment opportunities such as this asset, rather than the volatile sharemarket and interest rates we are currently seeing,” he said.
Published by Western Advocate