Burgess Rawson portfolio auction completed, both centres offered sold

Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, has completed its first portfolio auction of the new financial year at which both ECEC centres offered were sold. 

 

The auction, which was conducted over the phone, online and face to face at Auction Works, Sydney, saw 11 of the 13 properties sold for a total of $43.3 million. 

 

Commenting on the performance Burgess Rawson Director Adam Thomas said “We offered bidding via phone and online, as well as in person in Sydney. The change in venue and process did not deter investors, with registrations at an all-time high and strong bidding throughout the day.”

 

Two ECEC centres were offered within the sale both of which found buyers.

 

The first was a 120 license purpose built centre in Pakenham, Victoria leased to G8 Education Ltd which sold for $4.41 million and a yield of 5.95 per cent. 

 

The second was an 84 license centre built in 2003 in Rockhampton, Queensland leased to Guppy’s Early Learning which sold for $2.3 million and a yield of 6.23 per cent. 

 

These results are broadly in line with those recorded at Burgess Rawson’s last property auction in late June 2020 at which two Victorian centres achieved yields on sale of 5.86 per cent and 5.99 per cent and one Western Australian centre achieved 6.48 per cent. 

 

Compared to pre-COVID-19 the yields achieved are only marginally higher now then prior to the pandemic which sends a strong signal that investors remain committed to the sector from an investment perspective despite COVID-19.

 

Looking ahead Burgess Rawson will have at least three centres in their next auction, scheduled for 28 October 2020, located in Throsby, ACT, Maryborough, QLD and Townsville, QLD.

 

To see the results please click here.