ECEC freehold demand continues to shine as Burgess Rawson latest auctions see five centres sold

Early childhood education and care (ECEC) real estate and business broker Burgess Rawson has completed its latest auction campaign in which five centres were sold for a combined total of $26.56 million and an average yield of 5.17 per cent. 

 

Adam Thomas, Managing Director QLD and Partner at Burgess Rawson, said “We are very pleased with the performance of the child care sites presented.”

 

“Despite interest rates creeping higher and a general sense of uncertainty regarding the economic trajectory of Australia over the next twelve months we are still seeing strong interest for long lease, low risk assets with sound tenants.”

 

“This campaign was particularly notable because we had centres from four different states and all of them were well bid for and ultimately sold which signals to us the market is still in good shape.”

 

Auction results for this campaign were as follows:

 

• Port Macquarie, NSW – 104 place centre leased to Smartland Boutique Early Learning sold for $6.245 million at a yield of 5.30 per cent

 

• Coogee, WA – 64 place centre leased to Little Kids Club Early Learning sold for $4.355 million at a yield of 5.14 per cent

 

• Butler, WA – 90 place centre leased to Sparrow Early Learning sold for $5.01 million at yield of 5.12 per cent

 

• Mount Clear, VIC – 126 place centre leased to G8 Education sold for $5.2 million at yield of 5.37 per cent

 

• Toowoomba, QLD – 80 place centre leased to Grow Early Education sold for $5.75 million at a yield of 4.91 per cent

 

There were two other sites that are undergoing an expression of interest process in Hughesdale and Lovely Banks in Victoria.

 

The full suite of results from the auction campaign can be viewed on Burgess Rawson’s website.