Childcare centre yields continue their march lower at latest Burgess Rawson auction

Childcare centre yields continue their march lower at latest Burgess Rawson auction

by Jason Roberts

December 11, 2020

Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, has completed its December portfolio auction in which the two early childhood education and care (ECEC) centres offered for sale found buyers, one of which recorded a new low yield for the year of 5.58 per cent. 


The Group’s final auction of the year was held at the Crown Melbourne with bids also being submitted by phone and online as well as, for the first time, chat platform We Chat


Commenting on the auction Burgess Rawson Director Adam Thomas said that while it was terrific to return to the Crown after such a long period, it was also really encouraging to see so many investors bidding via phone and online, including interstate and internationally.


“Although COVID-19 appears to be behind us now our ability to create an auction platform that includes multiple channels through which buyers can bid is testament to our ability to adapt and the commitment of our bidders,” he added.


The results of the auction of ECEC services were as follows:


  • The 124 license place centre in Cranbourne West, Victoria currently leased to Imagine Childcare was sold for $6.91 million, a yield of 5.58 per cent


  • The 71 place centre in Melton, Victoria currently leased to Mayfield Childcare sold for $2.64 million, a yield of 5.87 per cent


The Cranbourne West centre currently leased to private operator Imagine Childcare achieved the lowest yield at a portfolio auction in 2020, beating its nearest rival, an Altona Meadows centre sold in the October auction, by 9 basis points.


It was also the highest value property sold this year at $6.91 million.  


“After a year that had been disrupted so severely by COVID-19 we were very pleased with the final yields achieved today. Demand for childcare assets continues to build momentum and we anticipate more of the same next year,” Mr Thomas said.


Burgess Rawson have confirmed their next portfolio auction will take place on 24 February 2021 at Crown in Melbourne.