Burgess Rawson logs early sale of Little Kindy, Bathhurst freehold ahead of October auction

Burgess Rawson, the early childhood education and care (ECEC) focused real estate and business broker, has confirmed a private investor has secured a premium childcare property in Eglinton, Bathurst for $2.3 million ahead of its next scheduled auction.

 

Burgess Rawson agents Kieran Bourke and Michael Vanstone facilitated the deal, with the final sale price reflecting a strong yield of 4.79%.

 

Mr Bourke said the combination of long-term security, a reputable tenant, and the asset’s prime location made this an appealing investment opportunity” with Mr Vanstone adding, a growing population and an undersupply of childcare in the area, made assets like these a rare and highly sought-after opportunity for investors.

 

Originally scheduled to appear in Burgess Rawson’s next portfolio auctions scheduled for Tuesday 29th October 2024 the quality of the asset has compelled the buyer to move early and bodes well for future sales as the month progresses. 

 

Strong tenant and excellent lease supported pre-emptive move 

 

Located at 25 Alexander Street, the asset is secured by a new 15-year net lease extending until 2039, with further options available until 2059. Investors were drawn to the property’s attractive fixed annual rent increases of 3.5%.

 

Operated by Little Kindy, a well-established childcare provider with 16 locations, the centre has been fully refurbished and maintains 100% occupancy across its 29 long day care places. The property sits on a land area of 812 sqm and has a net annual income of $110,200.

 

The location, adjacent to a café and a local primary school with approximately 448 students, enhances its appeal. Situated in a growing suburb, Eglinton’s population is forecasted to expand to 325,000 by 2041, positioning this asset for future growth.

 

Looking ahead Burgess Rawson’s next portfolio auction will take place at the Sydney Opera House on 29 October, Crown Casino Melbourne 30 October and the Hilton Hotel Brisbane on 31st October. 

 

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