Economics
Property
Record breaking real estate as Guardian centre sells for $6.95 million
Freya Lucas
Jan 21, 2019
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A Brisbane-based private investor, working through a commercial funds management company, has paid $6.95 million for a newly built childcare centre in a “growth hot spot” southwest of Brisbane, The Courier Mail has reported.
Speaking to The Courier Mail on behalf of Cushman and Wakefield, Michael Collins said the transaction broke the previous record for a freehold childcare centre in Queensland, saying “I’ve been through the data and I couldn’t find a higher price paid for a freehold property in that sector”.Mr Collins shared that there had been strong interest from investors, but that the high price had lessened the number of buyers interested in seriously pursuing the opportunity.
The property, Guardian Early Learning Augustine Heights, is licensed for 135 long day care places, and is leased for a ten-year term plus options, with 3 per cent annual rent increases, The Courier Mail reported.
Mr Mitchell Willett, who was also involved in marketing the property on behalf of Cushman and Wakefield, said the purchaser was attracted to the “hassle free” triple net lease structure and the improvements recently made to the building, which would offer “significant tax saving depreciation benefits”.
“Freehold childcare investments will continue to be a highly sought after asset class in 2019, with investors enticed by the strong fundamentals of the government supported childcare industry and the secure lease structures,” Mr Willett reportedly said.
The original coverage by the Courier Mail can be accessed here .
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