Burgess Rawson October portfolio auction sees good demand for ECEC centres again
Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, has completed its October portfolio auction in which the four ECEC centres offered for sale found buyers.
The auction, which was conducted over the phone, online and face to face at Auction Works, Sydney saw nine out of ten properties sold for a combined value of $32.6 million.
Commenting on the performance Burgess Rawson Director Adam Thomas said “For the second time this year we have conducted our Melbourne auction out of Sydney and once again the results have been very impressive with a 90 per cent success rate.
“The easing of restrictions in Melbourne has generated a renewed sense of optimism. As soon as the announcement was made, auction registrations increased dramatically and, today, the bidding was fast and competitive.”
The results of the ECEC centre auctions were:
- The 75 license place centre in Altona Meadows, Victoria currently leased to Victorian provider Baby Bells Pty Ltd was sold for $3.02 million, a yield of 5.67 per cent
- The 110 place centre in Throsby, ACT currently leased to Wonderschool Group sold for $7.8 million, a yield of 5.82 per cent
- The 74 licence place centre in Wulguru, Townsville, Queensland currently leased to Guppy’s Early Learning sold for $2.3 million, a yield of 6.46 per cent
- The 85-place centre in Granville, QLD currently leased to Affinity Education sold for $2.2 million, a yield of 6.99 per cent.
Overall yields have improved from previous auctions with the Altona Meadows result signalling a new low in yields since COVID-19 hit.
“We were very pleased with the ECEC centre performances. The results speak volumes for the strength of the sector, demonstrating that it has remained relatively immune to the impact of COVID-19,” Mr Thomas said.
Burgess Rawson have confirmed their next portfolio auction will take place on 9 December 2020 at Crown in Melbourne where four ECEC centres will be included for sale.