Geelong childcare centres in focus again
A Geelong building boom in the childcare sector has created a cash cow for developers cashing in on population growth.
A pair of childcare centres with outstanding investment credentials become the latest to add fuel of the booming Geelong childcare market.
The centres at Leopold and Grovedale, which will be auctioned at a Burgess Rawson portfolio auction on September 18, come amid a flurry of recent activity in the market.
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Most recently, a Curlewis centre leased to G8 Education netted $4.815 million on a 6.38 per cent yield.
The new Leopold centre occupied a 2392sq m mixed use zone on the Bellarine Highway, is positioned near a prime retail precinct that includes a Bunnings Warehouse, Kmart, McDonalds, Coles and Aldi supermarkets.
The home to a new childcare centre opened in Leopold this year is expected to sell for around $4.5 million at auction this month.
It’s 500m from Leopold Primary School and 7km from Geelong’s CBD.
Leased to Leopold Early Learning on a 15-year net lease with options to 2054, the 776sq m facility is licensed for 114 long day care places, paying a net rent of more than $295,000, plus GST and outgoings.
It is expected to sell for around $4.5 million, representing an attractive 6.5 per cent yield.
Burgess Rawson director Adam Thomas says the centre makes a compelling investment case, given its location and the tenant’s profile.
The new childcare centre opened in Leopold this year is expected to sell for around $4.5 million at auction this month.
“The operator was recently on the board of major childcare operator G8 Education, so they’re highly experienced.”
Also to be offered at the portfolio auction is a prominent childcare facility at 189-195 Torquay Rd, Grovedale.
Expected to attract interest around $2.4 million, the centre is more than 20 years old but comes with a new 10-year lease with two five-year options.
A childcare centre at 189-195 Torquay Rd, Grovedale, is expected to sell for around $2.4 million.
“They’re great properties in real growth locations,” Thomas says.
“The whole Bellarine Peninsula is rapidly expanding at the moment and particularly around Geelong.”
Burgess Rawson’s portfolio auction will be held in the River Room at Crown Casino on September 18 at 11am.
This article from the Geelong Advertiser originally appeared as “Leopold and Grovedale childcare centres to test the booming sector at portfolio auction”.
