Burgess Rawson March portfolio auctions sees four ECEC freeholds sold with best yield of 4.88%

Early childhood education and care (ECEC) real estate and business broker Burgess Rawson has completed its second auction campaign of 2023 with four centres sold, one of which achieved a yield of below 5 per cent. 

The resilience of yields in light of the steady march higher in interest rates has been impressive with the 85 place Rochedale South centre currently leased to Guardian Childcare and Education selling for $6.17 million, a yield of 4.88 per cent, well below the average 5.26 per cent of all centres sold so far this year. 

The two other Queensland centres sold at yields of 5.2 per cent and 5.43 per cent respectively, with the fourth, a centre in Taylor, ACT selling at a slightly higher yield of 5.51 per cent. 

“These sales continue to exemplify the continued demand for strategically located childcare investments with strong investment fundamentals,” Adam Thomas. 

“It’s amazing to think that this time last year cash rates were just 0.1 per cent and now they are up at 3.6 per cent yet demand for early childhood education and care freeholds is stable and consistent.”

“With further affordability measures due to be implemented in July this year, we remain optimistic that 2023 will continue the way it has started.”

Burgess Rawson’s 159 the portfolio auction was held across three locations on the 28th, 29th and 30th of March. 

The following results were recorded:

Sydney Auction 28th March 2023:

Taylor, ACT – 80 place centre leased to Taylor Early Learning Centre sold for $5.52 million and a 5.51 per cent yield  

Brisbane Auction 30th March 2023:

Woodford, QLD – 104 place centre leased to Oak Tree Academy sold for $6.1 million at 5.20 per cent yield

Robina, QLD – 122 place centre leased to Affinity Education Group sold for $8.8 million at 5.43 per cent yield

Rochedale South, QLD – 85 place centre leased to Guardian Childcare sold for $6.17 million at 4.88 per cent yield

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