This article is from the Australian Property Journal archive
Private investors have snapped up $37m worth of childcare centre assets in February, with Stonebridge managing the deals.
Stonebridge announced the sale of six properties across auction and expressions of interest campaigns, headlining with a $10.8m sale of a Nino Early Learning Adventures asset in Melbourne’s Ashburton to a Hong-Kong based investor.
Toowoomba, QLD
A Grow Early Education leased property in Toowoomba traded for $7.4m, reflecting a 5.46% yield.
The property traded with a 15-year lease to 2035. The 119-place centre occupies a 2,428 sqm Principal Centre-zoned site at 18 Hill Street, within Toowoomba’s CBD.
Crestmead, QLD
A childcare centre operated by Edge Early Learning in Brisbane’s Crestmead sold prior to auction for $6.6m and on a 5.22% yield.
The 1,557 sq m site at 58 Trulson Drive was sold on a 20-year triple net lease to 2043. Built in 2023, the site is nearby Crestmead Primary School.
Belmore, NSW
Leading the results at auction is the $5.4m sale of a Giggle & Learn freehold in the Sydney suburb of Belmore, reflecting a 4.23% yield.
The 38-place facility, built in 2019, is positioned just 11km from the Sydney CBD and secured by a 20- year net lease to 2044.
Ipswich, QLD
Also transacting at auction is the sale of an Amaze Early Education leased facility in Ipswich for $4m at a 5.30% yield.
The property sold $315,000 over reserve due to competitive bidding from five registered parties. The 76-place childcare centre, set on a 2,088 sq m site, is secured by a renewed 10-year net lease to 2035 plus options.
Grafton, NSW
Finally, a G8 Education leased facility in Grafton in the Northern River region exchanged off-market for $2.9m at a 4.95% yield.
The property features a 30-year triple net lease to 2036, plus a five-year option, with CPI annual rent increases.
“Childcare is a highly sought after sector underpinned by bi-partisan Federal Government support, with subsidies now totalling over $13 billion,” said Thomas Proberts, senior executive at Stonebridge.
In December, the Albanese government promised a $1bn fund to address the country’s childcare deserts, with the fund helping to build or expand more than 160 new childcare and early learning centres.