Offshore Asian Investor Secures Childcare Centre Amidst $50 million of Childcare Sales

Stonebridge has announced the recent sale of seven childcare centres totalling over $50 million, highlighting the ongoing demand from private investors in the sought after sector.

Headlining the results is the sale of a trophy Sydney-based facility at 173 Majors Bay Road Concord, offered on behalf of Healthco HealthCare & Wellness REIT. The property sold for $13,200,000 after only 7 days on market. The 100 place childcare centre is set across a 1,625 sqm site and carries a lease to local private operator, Endeavour Early Education, through to 2034 + options.

Commenting on the sale, Stonebridge Partner Tom Moreland said, “The major sale of the Concord childcare centre, secured only 7 days into the formal EOI campaign, signifies the pent-up demand for well-located Sydney based assets and the resilience of the childcare market which is being witnessed on a national basis. Investors continue to acknowledge the buoyancy of the childcare sector, bolstered by unwavering government support and appreciation for built-form assets given the ongoing difficulties being experienced in the construction sector, limiting the supply of new centres”.

Also selling on behalf of Healthco HealthCare & Wellness REIT was a Guardian childcare centre at Essendon in Melbourne. The asset sold for $9 million to an offshore Chinese investor via Stonebridge’s Asia Practice. The 131 place childcare centre is spread across a 1,909 sqm site with a lease in place to the national provider until 2031 + options. The sale realised a yield of 5.49%.

Commenting on the off-market sale, Stonebridge Asia Practice Partner, Kevin Tong, said “The property was ultimately sold to an offshore Chinese investor who is a first time childcare buyer. This demonstrates the ongoing shift from Asian capital towards premium Australian childcare assets, particularly those occupying large metropolitan landholdings across the eastern seaboard”

In Queensland, an established facility at 17 Clay Street, West Ipswich, 33km from Brisbane CBD and leased to G8 Education has recorded the lowest yield for over two years in the sunshine state, trading for $3,000,000 at 4.63%. The property sold off-market to a Sydney based private investor. Further north, a brand new facility at Caboolture, 48km from the Brisbane CBD, has sold to a private buyer for $7,700,000 at a yield of 5.6%, following a competitive EOI campaign. The property is set across a large 2,921 sqm site and leased for 15 years to national operator, Eden Academy, headed by a former G8 Education COO.

 

Other recent sales handled by Stonebridge’s specialist childcare team include:

• Little Locals Childcare Greenbank, Qld – sold $8,900,000 – 5.5% yield on a development fund-through basis
• Little Miracles Terrigal, NSW – sold $3,400,000 – 4.87% yield – sold via Portfolio Auction
• Affinity Childcare Maryborough, QLD – sold $3,500,000 – 6.87% yield – sold prior to Auction
• Eden Academy Woodridge, QLD – sold $5,050,000 – 5.80% yield – sold via Portfolio Auction
• G8 Childcare Lyndhurst, VIC – sold $5,700,000 – 4.68% yield – sold via Portfolio Auction
• Imagine Childcare Maryborough – sold $5,850,000 – 5.68% yield – sold prior to Auction

The above were negotiated by Tom Moreland, Michael Collins, Kevin Tong, Rorey James, Thomas Proberts, James Freemantle and Brett O’Neill.

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