$4m-plus hopes for Curlewis childcare
Listed childcare operator G8 Education is the prime marketing tool for a Curlewis tenanted childcare centre to be auctioned next week.
G8 holds a licence for 93 places at the 148-156 Jetty Rd facility to be offered in Melbourne on June 26.
Burgess Rawson agent Adam Thomas says the 3365sqm property has attracted strong interest from Victorian and interstate investors.
Commercial Insights: Subscribe to receive the latest news and updates
Thomas says price hopes are in the low to mid $4 million range.
“We’ve got strong underlying business fundamentals there — a highly profitable and successful business through a listed tenant on a long lease,” Thomas says.
“All of those meet investors criteria and ensure you’ve got stable, secure income for the long term over years to come.”
Thomas says the focus of investors will be on the fundamentals of the childcare sector, with its government backing, and the tenant, rather than its location in a Bellarine Peninsula population growth area.
He says it explains why the agency has sold a number of new childcare centres across the region, including Bannockburn, Geelong West, Newtown, Ocean Grove and Torquay.
“Developers have a mandate to deliver a type of commercial use, whether it’s childcare or medical or some form of retail, most of those developers are not long-term property people, so they build something to a requirement and they have a tenant and they sell that and exit that development and move on to the next one.”
G8 Education Ltd holds a secure net lease to 2028, with two options to 2048.
The estimated income is $307,245, with annual 3% increases.
The 825sqm centre is 400m from Clifton Springs Primary School and 500m from the Woolworths-anchored Bayview Central Shopping Centre.
This article from the Geelong Advertiser originally appeared as “Childcare centre promises a good earner for buyers at Curlewis”.