Early education drives strong results in $88.57m national property auction

Early childhood education and care (ECEC) assets have emerged as a key driver in Burgess Rawson from CBRE’s latest national portfolio auction, which delivered $88.57 million in sales and an 84.38 per cent success rate across three days.

The portfolio achieved an average yield of 5.62 per cent, with early education properties contributing almost $40 million of total sales and recording yields as low as 3.89 per cent.

In Queensland, early learning centres attracted competitive bidding. The Affinity Early Education Centre in Redbank Plains sold for $7.35 million at a 5.24 per cent yield, while Embark Early Learning in Kingaroy achieved $3.65 million, reflecting growing investor confidence in higher-value ECEC assets.

Three Goodstart Early Learning centres in Brighton, Aspley and Indooroopilly all achieved yields below 4.5 per cent, with the Aspley property selling for $5 million (3.89 per cent yield) and Brighton for a 3.91 per cent yield. In New South Wales, a Montessori centre in Merrylands sold for $4.2 million at a 4.18 per cent yield, and an Oz Education service in Gunnedah secured $6.1 million (5.74 per cent yield).

Burgess Rawson from CBRE Senior Sales Executive Josh Scapolan said the results showed a growing willingness among investors to compete for top-tier childcare assets.

“We’re seeing greater confidence in the top end of the market, particularly for centres with long leases and quality tenants,” he said. “Buyers are prepared to stretch further for well-located assets with strong fundamentals.”

Partner Matthew Wright noted that stable political conditions in some states, easing inflationary pressure, and the possibility of an interest rate cut have all contributed to renewed confidence in the market.

Senior Director Yosh Mendis added that the appetite for essential service assets remains strong.

“We’re seeing continued demand for properties backed by national operators and long-term lease covenants, particularly when they’re strategically located in growth areas or established regional centres,” he said.

Key outcomes for ECEC

• Total sales (all sectors): $88.57 million across three days
• Overall yield: 5.62 per cent
• Success rate: 84.38 per cent nationally
• ECEC sales: ~$40 million in total value
• Lowest ECEC yield achieved: 3.89 per cent (Goodstart Early Learning, Aspley QLD)
• Highest-value ECEC sale: $7.35 million (Affinity Early Education, Redbank Plains QLD)

The results are reinforcing early education’s position as one of the most sought-after asset classes in the current market, with investors showing a clear preference for well-leased, high-quality properties that provide stable, long-term income streams.

Adapted from Property Markets News “Burgess Rawson from CBRE reaps $88.57m in portfolio auction event 178”.