Sydney suburban early education asset sold 5.32% by Burgess Rawson
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Feb 16, 2024
Sydney suburban early education asset sold 5.32% by Burgess Rawson
A local private investor has paid $7.265 million for a purpose-built centre is leased to renowned operator Reggio Emilia, sold by Burgess Rawson agent Michael Vanstone.
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22a Hillcrest Street sold - Sydney suburban early education asset sold 5.32% by Burgess Rawson
A local private investor has paid $7.265 million for an early education asset in the thriving inner-west Sydney suburb of Tempe.
Burgess Rawson’s selling agent, Michael Vanstone said the sale price reflected a firm yield of 5.32 per cent.
Mr Vanstone said demand for childcare assets is strengthening with 2024 recording tighter yields than those achieved in 2023.
“We’re about to witness a wave of early education transactions with enquiry levels indicating an increase in buyer interest,” he said.
Located at 22a Hillcrest Street, the architecturally designed purpose-built centre is leased to renowned operator Reggio Emilia on a 12+5+5+5-year basis. The 69-place LDC centre generates a net annual income of $386,342 with annual rent increases the greater of CPI or 3.0 per cent.
The transaction follows Mr Vanstone’s $8.5 million sale of Story House in Alexandria which achieved a tight yield of 4.89 per cent, reinforcing the strength and desirability of the early education sector.
Mr Vanstone reiterated the positive economic indicators, including a significant reduction in inflation and the anticipated pause on interest rate hikes, which create a sound foundation for the months ahead.
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Sydney suburban early education asset sold 5.32% by Burgess Rawson e.
Important Information:
Contact details:
Michael Vanstone
Burgess Rawson
0403 580 528
Email
18667
18046
Michael Vanstone
