Prime lease a feature at Brisbane childcare centre
An A-grade lease and high-end construction are expected to make a Brisbane childcare centre one of the best in show at an upcoming auction event.
The childcare centre at Ashgrove, northwest of the Brisbane CBD, will have plenty of admirers when it is put up for sale at Burgess Rawson’s upcoming Portfolio Auction at Crown Casino on Wednesday, September 18.
The boutique 54-place centre at 42 Ashgrove Ave is tipped to sell in the low to mid-$4 million range, with potential buyers already eyeing its very attractive lease to highly regarded national early learning operator Green Leaves.
Commercial Insights: Subscribe to receive the latest news and updates
“It doesn’t get much better than this in terms of lease structure,” Burgess Rawson Director and childcare specialist Adam Thomas says.
“It’s a new 15-year triple net lease, meaning the tenant is responsible for all outgoings, including land tax,” Thomas says.
“Plus, there are two additional five-year options, 3% annual increases and ‘ratchet’ provisions, ensuring the rent can never go backwards when the lease is reviewed.”
The double-storey facility has 482sqm of floor space across a prominent 836sqm main road corner site, just metres from Ashgrove Marketplace shopping centre, which is anchored by Coles, Woolworths and Aldi.
Thomas says there has been considerable effort and expense during the development phase to ensure the centre gained a reputation as a high-end facility. Its layout incorporates a pre-existing home, which was included as a key part of the design.
“It’s a very expensive build, an absolute blue ribbon property,” Thomas says.
“They relocated the house off-site, built the whole concrete slab and then put the house back on when they constructed the centre.”
The Ashgrove childcare centre will be sold as part of Burgess Rawson’s Portfolio Auction in Crown Casino’s River Room at 11am on Wednesday, September 18.