Coffee, childcare driving Belmont property to auction
Geelong’s booming drive-through coffee trade is set to provide a sweetener to investors as a Belmont childcare centre is offered at a major commercial property auction this month.
Bean Squeeze holds a partial lease at 322-328 High St, Belmont, where boutique childcare provider Elements Early Learning holds a secure 15-year net lease to 2029 with three further options to 2044.
The front section of the 4449sq m property is leased to Bean Squeeze for five years to 2025, with another five options to 2050.
The leases combine to return $379,806 per year, plus GST.
Burgess Rawson childcare specialist Natalie Couper said the length of the leases and tenant history placed the asset among the best in show at the firm’s investment portfolio auction in Melbourne on June 23.
“Elements Early Learning is exceptionally well regarded, as evidenced by their 100 per cent occupancy and very long waitlist at this centre,” Ms Couper said.
“From an investment security point of view, Elements is well established with a long trading history and have an incredibly strong following with a long line of families trying to get their children into one of their locations.”
Ms Couper said Bean Squeeze has 10 locations throughout Geelong, making it a well known name in the region.
“They’ve been at this site a long time and the lease is effectively a ground lease, the building is owned by the tenant, so there’s no obligation on the landlord for any maintenance or repairs moving forward.”
The property benefits from an unrivalled location for childcare, with 10 schools within 1.5km, while High St shopping strip and the Coles and Woolworths-anchored Waurn Ponds Shopping Centre are both just moments up the road.
“It’s also within easy access of the Geelong Ring Road, Bunnings, Harvey Norman and the Geelong Homemaker Centre,” Ms Couper said.
She also pointed to the site’s future potential as another major drawcard for investors.
“It’s a large site, there’s the potential to subdivide in the future, offering an additional land banking opportunity, given its extensive highway frontage.”