Location key for two Queensland childcare centres
If location is everything, then two Queensland childcare centres to be auctioned this month could be hard to top.
The first, leased to Sanctuary Early Learning at Buderim on the Sunshine Coast, was already well positioned, directly opposite an IGA supermarket and other specialty retailers, and just 200m from a McDonald’s restaurant.
But its appeal is soon set to grow further, with a new Coles-anchored shopping centre and other retail stores to be completed in the months after the childcare centre is sold at Burgess Rawson’s latest Investment Portfolio Auction in Melbourne on May 15.
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Licensed for 90 long day care places, the brand new, purpose-built centre at 140 Jones Rd occupies 548sqm of a substantial 2643sqm corner site, and is leased to Sanctuary for 15 years. It currently returns $247,500 plus GST in annual rent, with 3% annual increases and Sanctuary to pay all outgoings, including land tax.
Burgess Rawson childcare specialist Natalie Couper, who is marketing the property with Adam Thomas and Jamie Dewe, says childcare centres rarely come better located than the Buderim property.
“As far as childcare centres go, it’s position-perfect,” Couper says.
“It’s surrounded by high quality residential estates, and is only minutes from the heart of both Maroochydore and Mooloolaba. Being a new construction, you’ll also be able to take advantage of significant depreciation benefits.”
Another childcare centre at the gateway to Port Douglas will be auctioned the same day, offering a long lease to an experienced brand.
The modern Petit Early Learning-operated asset has a triple net lease for 15 years, with options to 2039. The high-profile 2663sqm site at 507-511 Davidson St sits alongside the Captain Cook Highway, on the key tourist route from Cairns.
The childcare centre, which measures 576sqm, has 20 car spaces and is licensed for 88 long day care places, is currently leased at $197,877 plus GST and outgoings, and the lease also includes ‘ratchet’ provisions.
Couper says childcare is well and truly back on investors’ radars.
“Already in 2019 we’ve seen increased interest in childcare assets, and with a number of Federal Election commitments set to benefit operators and the industry as a whole, owners of childcare-leased properties are certain to enjoy a position of strength in the coming years,” she says.
The Buderim and Port Douglas childcare centres will be auctioned at Burgess Rawson’s Investment Portfolio Auction at Crown Casino’s River Room at 11am on Wednesday, May 15.