This article is from the Australian Property Journal archive
A “government-based” buyer has spent nearly $10 million on a brand-new childcare centre in western Sydney with high energy efficiency credentials.
Located on Digitaria Drive in Gledswood Hills, the centre will be occupied by Futuro Early Learning on a 20-year lease plus options, with the $9.92 million sale price reflecting a net yield of 5.1%.
Burgess Rawson’s Michael Vanstone said the property was snapped up by a government-based buyer who was attracted to the centre due to the exceptional quality of construction and the new breed of socially conscious operators who are setting the standard by being carbon neutral.
The centre is developed by education property specialists, Jeckra, which has worked on over 80 childcare centre projects across Australia. Its managing director, Gavin Jennings said, “we been working to create innovative buildings and childcare spaces that adopt sustainable technologies and materials to ensure a low operating carbon footprint for operators.
“There’s been a big shift in demand for this product in recent years and the need to keep up with technology and best-practice construction methodology is crucial to stay relevant in the market.
“Operators moving into new centres are now, more than ever, requesting sustainable initiatives be incorporated into lease inclusions, which in turn is attracting interest from a wider base of potential buyers.”
Jeckra has four other projects to come on stream with an end value totalling $35 million, all in emerging greenfield suburbs.
Vanstone commented that these quality early learning centres appeal to a range of buyers, but high net worth individuals remain the primary investors of early learning centres as they are attracted to the ease of ownership, or “set and forget” aspects of these investments.
Burgess Rawson has sold six early learning centres over the past few weeks plus a substantial business taking the combined sales total to over $43 million. Vanstone said interest has pepped up over 2023 despite the increased interest rates primarily due to the robust recession-proof nature and quality of the properties on offer.
Other deals brokered by Burgess Rawson include the $4.65 million sale of a centre at Lake Cathie while in Belfield, a centre sold for $5.45 million and in Seacombe Gardens, South Australia, a centre sold for $6.97 million.
Yields ranged between 5.1% and 5.8% for the six properties sold.
A childcare business in the inner west also sold, for $6.7 million.
