Charter Hall Social Infrastructure REIT (CQE or the REIT) today announced that it has successfully divested of three childcare centres in accretive transactions that demonstrate the resilient demand and liquidity of the childcare sector.

In NSW, CQE sold a childcare centre in Cremorne for $18.5 million, reflecting an initial yield of 4.7%. Notably, this was the largest childcare transaction this year nationally and the largest childcare transaction in NSW since 2019. CQE also divested of an asset in South Coogee for $7.2 million, reflecting an initial yield of 4.6%.

A childcare centre in Linden Park, South Australia was also divested for an initial yield of 2.8% for $2.2 million following significant buyer enquiries.

Overall, the divestments totalled $27.9 million at an average yield of 4.5% and reflected a 4.8% premium to 30 June 2024 book values, as disclosed in CQE’s FY24 results.

CQE Fund Manager, Travis Butcher, said, “The continued liquidity of childcare assets in a higher interest rate environment is testament to the resilience of this sector, reflecting its essential nature, ongoing government support, and broad investor appeal given the generally lower price bracket. CQE continues to execute on its portfolio curation strategy with the proceeds of these sales being applied to debt reduction.”

The Cremorne transaction was brokered by CBRE and Linden Park and South Coogee were brokered by Burgess Rawson.

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