This article is from the Australian Property Journal archive
AUSTOCK Property Management, the manager of three real estate funds, has put more than $40 million worth of ABC Learning childcare centres on the market.
Austock Property has appointed Jones Lang LaSalle to sell 43 childcare centres across Australia through a public expression of interest campaign.
The value range of the properties is between $1 million and $2 million, with 15 in Victoria, 10 in Queensland, seven in New South Wales, six in South Australia and five in Western Australia – offering rents from under $100,000 to approx $200,000 per annum.
JLL Victoria managing director Andrew Wood said these properties provide unique business opportunities in what has typically been an industry with high barriers to entry.
“There’s a definite opportunity for childcare operators or for investors to hold good sites with strong income producing potential. These are typically large sites with a high level of underlying land value.
“We anticipate a very solid level of interest from childcare centre operators due to their scarcity and high replacement cost, plus other groups who recognise the underlying potential in the sites including community uses, specialist medical use, consulting suites, aged care services or developers for total redevelopment into residential apartments,” he added.
The Austock managed Australian Education Trust, fund manager Nick Anagnostou said ABC Learning vacated these centres recently and the opportunity is right to invite the public to register interest in order to determine their best use.
“It is in the best interests of the unitholders and local communities that these properties are offered publicly for sale or lease to childcare centre operators, alternative users or developers who may identify a more appropriate use.
“Over recent weeks we have been buoyed by the large volume of people contacting us wishing to buy or lease the properties. The childcare industry is currently under stress and an undersupply in some areas is contributing to that.
“This represents a great opportunity for other operators to step in and capitalise on what are very good assets,” he concluded.
The EOI closes at 1:00pm on Wednesday March 25.
Australian Property Journal
