Dual Geelong childcare centres sell as interest builds
Two Geelong childcare centres have sold for a combined $6.94 million as investors seek to capitalise on the region’s population boom.
A new Leopold childcare centre become the latest in a flurry of sales across the sector when was it was snapped up for $4.79 million at a Burgess Rawson portfolio auction.
The high-profile facility occupies a 2932sqm site on the Bellarine Highway, close to a prime retail precinct anchored by Bunnings and Kmart.
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It’s leased to Leopold Early Learning on a 15-year net lease with options to 2054 and is licensed for 114 long daycare places.
Another established childcare centre at 189-195 Torquay Rd, Grovedale was also traded for $2.15 million at the same portfolio auction.
Burgess Rawson director Adam Thomas says both are in growth locations that made a compelling case for potential investors.
He says the sales, part of six childcare centres sold nationally within 24 hours, indicate interest in the childcare sector is continuing to build in the second half of 2019.
“Childcare continues to be at the forefront of investors’ minds,” Thomas says.
He earlier said the experience of the Leopold operator, who was on recently on the board of major childcare operator G8 Education, boosted its attractiveness.
The tenant is paying a net rent of more than $295,000, plus GST and outgoings for the 776sqm facility.
The childcare sector has produced some big results across Geelong in the past year, with centres in Newtown, Bannockburn, Geelong West and Torquay finding new owners.
The auction comes hot the heels of the sale of a Curlewis centre leased to G8 Education which netted $4.815 million on a 6.38% yield.
This article from the Geelong Advertiser originally appeared as “Childcare centres in Leopold and Grovedale snapped up as region’s growth continues to flourish”.