This Little Learning School went to market for $3.18m

This double block, including a childcare centre, in South Granville fetched $3.18 million.

A busy childcare centre set in a suburban hot spot has been snapped up by an investor. 

The 80-place facility at 20 and 22 Ostend St, South Granville, went under the hammer earlier this month with five registered bidders and sold for $3.18 million.

Bringing in a net annual income of $185,000, the property piqued the interest of more than 50 parties during the auction campaign.

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Burgess Rawson’s childcare specialist Michael Vanstone says about two years ago the sellers put “a lot of money” into upgrading the internal rooms and outdoor area, which drew in a mix of local buyers.

The South Granville property houses two child-friendly buildings.

“The suburb also has a considerably high 0-5 years age group at 7.92% compared to the NSW average of about 6% and its population growth rate is also higher – these are great numbers when you are looking at having an asset like this under your belt,” Vanstone says.

The new owner, a private buyer, had been looking to add childcare to his investment portfolio and wanted to capitalise on the 5.82% yield.

Little Learning School, which has 26 centres across the state, has signed a new 10-year lease that has the option of extending to 2048.

South Granville childcare

There’s plenty of room to play at the South Granville childcare centre.

The company operates across the two buildings on site, one of which is set over two storeys.

CoreLogic records reveal the adjoining last traded for $750,000 in 2006 as part of a multi-sale.

The size of the double block spanning 1388sqm was another drawcard for buyers, as it was a rare offering, according to Vanstone.

A Leumeah childcare centre on less than 500sqm sold in March for $1.66 million.

This article from the Parramatta Advertiser originally appeared as “Investor snaps up western Sydney childcare centre”.