Burgess Rawson February portfolio auction sees strong demand, all six ECEC investments sold

Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, has completed its first portfolio auction of 2021 in which six centres were offered for sale, all of which found buyers with one, in Mount Martha, achieving the lowest yield at auction in the last two years. 

Burgess Rawson Director Adam Thomas said, “It is terrific to see the ECEC space generate such interest and to have another clean sweep with all centres offered sold is yet another indicator of the strength of the market.”

“We are also particularly excited about the sale of the Mount Martha, Victoria centre which is currently leased to Little Acorns. It achieved a yield of 4.86 per cent which is a tremendous result for a new centre and marks a new record low.” 

The combined total of all centres sold at the auction was $25.9 million and buying interest in terms of enquiries reached 472 with 50 bidders ultimately registering to participate. 

The results of the auction were as follows:

• The 108 place centre in Throsby, ACT currently leased to Insight Early Learning was sold for $7.25 million, a yield of 5.65 per cent

• The 70 licence place centre in Castlemaine, Victoria currently leased to G8 Education Ltd was sold for $1.8 million, a yield of 5.87 per cent

• The 80 license place centre in Mount Martha, Victoria currently leased to Little Acorns Early Learning was sold for $6.3 million, a yield of 4.86 per cent

• The 127 licence place centre in Bairnsdale, Victoria currently leased to Evolve Education Group was sold for $1.7 million, a yield of 5.56 per cent

• The 134 licence place centre in Truganina, Victoria currently leased to Woodlands Early Education was sold but pricing details were not disclosed

• The 46 licence place centre in Ashmore, Queensland currently leased to The Cottage Early Learning was sold for $2.6 million, a yield of 5.09 per cent

“The strong performance was not just limited to the child care market,” Mr Thomas said, “We also had very strong demand for other properties with one in particular, a Viva Energy fuel station in Torquay attracting 105 bids before finally selling at a 4.89 per cent yield.”

The next Burgess Rawson portfolio auction will be held on Wednesday 31 March.

To see the results please click here.