This article is from the Australian Property Journal archive
A PRIVATE investor has snapped up a childcare centre at Dee Why for $6 million on a yield of 5.97%.
Located at 63 Lynwood Avenue Dee Why, the two-storey centre, approved for 86 childcare places, was custom built in 2009 on a 1,672 sqm block.
It was sold under the hammer by Colliers International’s Brian McInally and Corey Beauchamp.
The centre was sold via a sale and leaseback deal with the private operator agreeing to a 10-year lease with a 10-year option. The sale price reflects a yield of 5.97%.
“While we’re seeing yields compress in this asset class, childcare properties are still highly lucrative for investors when compared to other property classes.
“Childcare is an appealing option for many investors. With a depth of operators looking for purpose built centres in strong growth areas such as the Northern Beaches, childcare centres are proving highly lucrative for a range of investors,” McInally said.
Australian Property Journal
