Economics
Property
Records fall at latest Burgess Rawson auctions as sub 3.00% yield achieved for first time
Jason Roberts
Oct 04, 2021
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Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, has completed its latest auction campaign which saw events held across three state capitals over consecutive days with multiple records, including a sub 3.0 per cent yield, achieved for the first time.
Properties in Victoria, Tasmania and South Australia were auctioned in Melbourne on 28 September, Queensland in Brisbane on 29 September and New South Wales and Western Australia in Sydney on 30 September.
“In our 46 years of operation, an auction campaign of this magnitude has never been held at Burgess Rawson,” National Head of Agency, Adam Thomas said, “however, the strength of the results is testament to the extraordinary demand for ECEC related assets which has persisted all year and appears to be getting stronger.”
“To see not just one but two major records fall says it all and we continue to be very excited about the future of what is developing into being a must have asset class for investors.”
Sub 3.00% yield achieved on NSW centre with records falling in Metro Brisbane too
Affinity Education’s Milestone centre in Umina Beach, NSW marked the first sub 3.00 per cent yield in the history of Burgess Rawson auctions with 2.99 per cent achieved at a price of $7.5 million.
Over 50 bids from 22 registered bidders were received with the new owner paying around 38 per cent above the reserve price to secure the asset.
Elsewhere, records also fell with the Cooinda Early Learning in Caboolture South, north of Brisbane being sold for a yield of 4.41 per cent, marking a new low for a Queensland based centre and although not quite a record, the Handprints ELC centre in Turramurra sold for $8m, 30% over reserve after 50 bids from 16 registered bidders.
“The strength in New South Wales and Queensland was very notable in this campaign with strong prices realised for centres offered and key records being broken,” Mr Thomas added.
“Of particular note though was the very high levels of bidder participation recorded over the three days. This is really a sea change and by our calculation we estimate a very significant portion of bidders are still looking to invest in the space.”
“We look forward to continuing to offer high quality opportunities in our future auctions to help meet this demand.”
Auction results for this campaign were as follows:
- Milestones Early Learning, Umina, NSW (72 places) sold for $7.5m at 2.99% yield
- Handprints Early Learning Centre, Turramurra, NSW (48 places) sold for $8.0m at 3.3% yield
- Cooinda Early Learning, Caboolture South, SEQLD (55 places) sold for $2.175m at 4.41% yield
- Lakeview Kindergarten & Childcare Lilydale, VIC (38 places) sold for $1.6m at 4.46% yield
- Creative Garden Early Learning, Banyo, SEQLD (75 places) sold for $3.955m at 4.80% yield
- Petit Early Learning Journey, Murwillumbah, NSW, (110 places) sold for $5.35m at 4.92% yield
- Buttercups Childcare & Early Learning, Hammond Park, WA (68 places) sold for $4.525m at 4.98% yield
- Sanctuary Early Learning, Bentley Park, SEQLD (140 places) sold for $6.95m at 5.45% yield
- Genius Childcare, Nerang, SEQLD, (75 places) sold for $4.7m at 5.58% yield
- Papilio Early Learning, Pitt Town, NSW (130 places) solid for $8.725m at 6.80% yield
- Where We Grow Early Learning, Angle Vale, SA (120 places) - Undisclosed
- Where We Grow Early Learning, Strathalbyn, SA (75 places) - Undisclosed
A detailed list of property information, including a recorded version of auction live stream, bidding increments and individual centre information can be found here.
Further information about the services offered by Burgess Rawson may be found here.
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