Stonebridge announce the preliminary success of its February Portfolio Auction & EOI campaigns securing over $37 million in childcare investments sold through Victoria, New South Wales and Queensland.
Stonebridge has announced the preliminary success of its February Portfolio Auction & EOI campaigns, achieving strong national and international investor participation. In February, the firm has secured over $37 million in childcare sales via Auction, EOI and off market processes.
Leading the results is the sale of a Giggle & Learn freehold at Belmore in Sydney, which achieved a sharp 4.23% yield, selling under the hammer for $5,417,000. The 38 place facility, built in 2019, is positioned just 11km from the Sydney CBD and secured by a 20- year net lease to 2044.
Also transacting at auction, a childcare facility in Ipswich, Queensland, leased to Amaze Early Education sold for $4,015,000 at a 5.30% yield. The 76 place childcare centre, set on a 2,088 sqm landholding, is secured by a renewed 10 year net lease to 2035 plus options. Competitive bidding from five registered parties saw the property sell $315,000 over reserve.
In another standout Queensland result, a childcare centre at Crestmead in Brisbane sold prior to auction for $6,650,000 at a 5.22% yield. Operated by Edge Early Learning, the centre is positioned adjacent to Crestmead Primary School and benefits from a 20 year triple net lease to 2043. The newly built facility was completed in 2023 and is set across a 1,557 sqm site.
In Toowoomba, a Grow Early Education leased property at 18 Hill Street changed hands prior to the close of its Expressions of Interest campaign, selling for $7,400,000 at a 5.46% yield. The 119 place centre, occupying a 2,428 sqm Principal Centre-zoned site, is underpinned by a 15-year lease to 2035. The property benefits from a prime position in Toowoomba’s CBD, directly opposite Grand Central Shopping Centre, which welcomes over 10.8 million visitors annually.
Also selling prior to EOI close was a premium facility in Ashburton, Melbourne. Leased to Nino Early Learning Adventures, the asset sold to an offshore, Hong Kong based investor sourced via Stonebridge’s Asia Practice, for $10,795,000.
Finally, a G8 Education leased facility in Grafton, NSW exchanged off-market, selling for $2,900,000 at a sharp 4.95% yield. The property features a 30 year triple net lease to 2036, plus a five year option, with CPI annual rent increases.
Stonebridge Partner, Tom Moreland commented, “Our February Portfolio Auction event saw outstanding attendance and competitive bidding for quality assets. Sentiment amongst private investors continues improving as long-term leased commercial properties resurface as the annuity-style investment of choice.”
Stonebridge Senior Executive, Thomas Proberts added, “Childcare is a highly sought after sector underpinned by bi-partisan Federal Government support, with subsidies now totalling over $13 billion. This, alongside the strategic position of most facilities nearby schools and retail amenity, is appreciated by savvy investors who are drawn to the long-term leases on offer.”
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