Killara asset headlines $50 million Burgess Rawson early education auction event

Burgess Rawson’s upcoming portfolio auction event will feature approximately $50 million in assets for sale, including a premium early education asset in the prestigious Sydney North Shore suburb of Killara.

The centre, currently leased to Little Leo’s, has been exclusively listed for sale with Burgess Rawson’s Michael Vanstone and is expected to sell for more than $12.5 million.

“The property is an exceptional investment opportunity, combining a prime location in one of Sydney’s most affluent suburbs with a long-term lease to a reputable tenant in the childcare sector,” Mr Vanstone said.  

“The modern, purpose-built facility, coupled with strong demographic fundamentals, makes it a secure and attractive addition to any portfolio.”

Located in the heart of the affluent Killara, strategically located just 300 metres from Beaumont Road Public Primary School and within a three-kilometre radius of 18 schools, the centre is ideally positioned to serve the community’s childcare needs. 

Killara is known for its strong family-oriented demographic, with a median household income 60 per cent above the national average. This, coupled with the suburb’s ongoing growth, underscores the investment’s long-term potential.

It is also conveniently accessible, being central to Macquarie Business Park, just five kilometres from Chatswood, and in close proximity to both the Killara and Lindfield train stations and presents a rare investment opportunity within Sydney’s thriving childcare sector.

The purpose-built facility, with a capacity for 96 children, occupies a substantial 2,015 sqm land banking parcel zoned R2 – Low Density Residential and has been thoughtfully constructed to support educational outcomes, providing a seamless transition between its two buildings. 

It stands out not only for its design but also offers significant depreciation benefits. Additionally, the property benefits from being a land tax-free commercial investment in New South Wales.

With a net income of $629,410 per annum, this blue-chip property offers a secure and high-performing asset, making it a solid addition to any investment portfolio, further enhanced by a long 12-year net lease extending to 2033, with three additional 10-year options available, potentially securing the property’s tenancy until 2063.

Investors are assured of consistent income growth through fixed 3  per cent annual rent reviews, with the tenant covering 100 per cent of all usual outgoings, including rates, insurance, and general repairs and maintenance.

The asset, along with others in New South Wales, Victoria and Queensland will be sold at Burgess Rawson’s Portfolio Auction Event 171 commencing at the Sydney Opera House on September 17.

Details of a selection of other opportunities featuring in the event include, but are not limited to:

Eden Academy Packenham, Vic (rent is $460,375)

Edge Early Learning in Cannon Hill, QLD (rent is $472,232)

Goodstart ELC and retail, Heatley, QLD (rent is $385,000)

G8 Education in Baldivis WA (rent is $362,570)

Journey Early Learning Thomastown Vic (rent is $355,000)

Insight Early Learning Dubbo, NSW (rent is $313,729)

Nido Early School Woodend, Vic (rent is $201,550)