Owners take $22 million in a year from Geelong children centre sales
Owners have raked in more than $22 million from childcare asset sales in the Geelong region in the past year.
The figure emerged after a Curlewis centre leased to ASX-listed industry giant G8 Education sold for $4.815 million, representing at 6.38 per cent yield.
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Commercial agents Burgess Rawson auctioned the property at 148-156 Jetty Rd, Curlewis, last week.
A Sydney investor emerged as the buyer for the 825sq m property.
Burgess Rawson childcare specialist Adam Thomas said childcare was again squarely on investors’ radars.
“This clear demand means childcare asset sales have an air of predictability around them, which is driving further confidence in the market,” Mr Thomas said.
The childcare sector produced some big results in the region in the past year, with modern, new centres in Newtown, Bannockburn, Geelong West and Torquay finding new owners.
The 215 Aberdeen St, Newtown facility, leased to Federation Children, sold for $6.025 million in an expressions of interest campaign.
A 3170sq m property at 1 Saffin Court, Bannockburn, sold for $4.5 million in April.
Opposite the town’s new P-12 school, the 126-place facility is leased to Happy Feet early learning centre.
Earlier sales included a Church St, Geelong West centre that sold for $5.45 million at auction.
The Church St centre included a 2481sq m land component, with a 15-year lease with options until 2052. It was licensed for 137 places.
A Torquay centre was overlooked at auction in 2018, but sold later for $6.1 million. The 3612sq m property at 1 Pintail Court was licensed for 141 places, with a 15 year lease with options until 2063.
Mr Thomas said the sales occurred by the centre developers were exiting the investments after meeting their construction commitments.