Burgess Rawson completes first post COVID-19 auction, 3 ECEC freeholds change hands
Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, has completed its first portfolio auction and test of the commercial property market since COVID-19 restrictions were lifted, at which three ECEC centres were sold.
The auction, held in Melbourne, was attended by a wide range of buyers in a new face to face format that accounted for Victoria Government COVID-19 guidelines as well as an online bidding platform.
“Today was the first major commercial property auction event since COVID-19 restrictions eased,” Burgess Rawson Melbourne Director Billy Holderhead said, adding that Burgess Rawson are “delighted” with the results of the day, and commenting on the “genuine buzz” in the room, and the rapid pace of the bidding.
Of the ECEC centres that changed hands, two were in Victoria, in the suburbs of Werribee and Epping. The Werribee centre, currently leased to Imagine Childcare achieved a yield on sale of 5.86 per cent, and the Epping centre, currently leased to Wallaby Childcare achieved a yield on sale of 5.99 per cent.
Both results were ahead of expectations that had been driven lower by concerns of the long term impact of COVID-19, and compared well to a centre in Tarneit, Victoria that had achieved a yield on sale of 5.79 per cent yield at Burgess Rawson’s last portfolio auction held in March 2020.
The third centre, located in Padbury, Western Australia and leased to Nido Early School achieved a yield on sale of 6.48 per cent, higher than Victoria but consistent with expectations for ECEC centres in the region.
To see the results please click here.