Burgess Rawson records lowest ECEC centre yield for 2024 at June portfolio auction

Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, concluded its June 2024 portfolio auction campaign with the sale of a property, leased to Affinity Education Group, for the lowest yield this year. 

 

The 49 place centre in Killara, NSW sold for $7.78 million, a yield of just 4.14 per cent, a full 53 basis points lower than the next sharpest rate recorded this year which was on a sale of a Goodstart Early Learning leased centre in Mt Hutton sold in May.

 

“We continue to witness robust demand for high-quality investment opportunities in prime locations such as Killara,” Burgess Rawson Director of Childcare, Michael Vanstone said. 

 

“The premium property ticked all the boxes with the result reflecting the strong competition and demand for these assets.”

 

The June auction campaign, including non ECEC assets, saw a high 77 per cent success rate and a total of $60.43 million in transactions with average sales prices of $3,915,714 and an  average of 15 bids per asset.

 

Burgess Rawson’s CEO, Ingrid Filmer said there is a much deeper pool of buyers for properties in good locations and with strong tenants locked in. Many of these investors pay with cash and are seeking a secure income stream rather than worry about interest rate settings

 

Burgess Rawson’s next portfolio auction campaign will begin in Sydney on 6 August 2024 followed by Melbourne on the 7th and Brisbane on the 8th.