Stonebridge has announced the sale of four childcare centres, totalling over $28 million. Each of the Queensland based assets were sold by Tom Moreland and Michael Collins, via off-market sales to private investors on behalf of a developer, childcare operator and active fund manager Clarence Property.
Headlining the results is the sale of a premium Brisbane-based facility at 140 Dorville Road, Carseldine, situated 15km from the CBD. The property is leased to well-regarded national operator, Journey Early Learning and sold for $9,836,666 to a local private investor, achieving a sharp 5.18% yield. The newly built 120 place childcare centre is positioned on a 2,756 sqm landholding and carries a new 15 year net lease through to 2039 + options.
Further north in the growing suburb of Griffin, 26km from the Brisbane CBD, a new Harmony Early Learning development has sold prior to completion on behalf of the active operator. The property has traded for $7,240,000 at a yield of 5.56% and is due to open in October 2024. Harmony Early Learning have committed to a new 20 year lease and will pay $402,550 pa across the 83 place facility. Improvements consist of a state-of-the-art childcare centre set across a 2,157 sqm site.
Rounding out the transactions are two sales on behalf of market leading Fund Manager Clarence Property. The first, a Toowoomba childcare centre in regional Queensland, which sold for $5,850,000, reflecting a 5.61% yield. The 1,538 sqm property is positioned in the leafy suburb of Rangeville and sits directly opposite a local primary school. The new facility is operated by Story House Early Learning on a 20 year net lease through to 2043 plus options.
The second, a new Guardian leased facility at Bellbowrie in Brisbane also exchanged. Located 17 km from the CBD on a 2,014 sqm site at 117 Kangaroo Gully Road, the centre was sold prior to the tenant commencing trade for $5,400,000 at a yield of 5.44%. Guardian has committed to a new 15 year lease until 2039 and will pay $294,000 pa across the 83 place facility.
Commenting on the sales, Stonebridge Partner Tom Moreland said, “Investor confidence in the childcare sector and demand for quality assets remains high. Buyers continue to seek the secure and passive fundamentals of long term lease security, income growth and extremely strong levels of tax depreciation available when purchasing newly built childcare centres. The other key notable theme witnessed by our national team is investor recognition of built-form in the current environment given the ongoing challenges faced in the development and construction sectors, constraining supply of new offerings to market, especially in metropolitan locations”.
Stonebridge Partner, Michael Collins continued “We expect ongoing resilience across the national childcare market, which is underpinned by bi-partisan Federal Government subsidies, totalling over $10 billion annually, coupled with the strong underlying business performance of operators. This, together with strategic locations of facilities nearby schools, retail amenity and transport nodes will continue driving interest in the freehold investments”.
Stonebridge’s imminent August National Portfolio launch includes 7 premium childcare offerings across the Eastern Seaboard, positioned in high profile metropolitan locations across Sydney, Melbourne, Brisbane and the Gold Coast.
