Childcare centres ripe for Burgess Rawson's 103 portfolio auction
Childcare centres were much in demand at Burgess Rawson's 103 portfolio auction in Sydney on Tuesday, with all the four on offer being snapped up by investors.
Hubba Bubba Child Care at 204 Mowbray Road in Sydney's Chatswood, which had received 185 enquiries prior as reported by Property Observer, sold for $2.41 million on a record low yield of 3.9 percent to a local investor.
The 26-place childcare centre with 100 percent occupancy earns a net of $94,000 pa plus GST.
The portfolio auction of 19 properties generated more than $35 million in sales, according to the Australian Financial Review.
Burgess Rawson director Dean Venturato said the Chatswood childcare centre sale was the clear standout result.
"We've sold over 120 childcare centres over the last two years and it's the first time we've sold one on sub-4 percent yield," he was quoted as telling AFR.
Another childcare centre, at 10/4-8 Waine Street, Freshwater, sold on a 6.1 percent yield. This one has 80 places with 100 percent vacancy and a waiting list.
