An ASX listed childcare centre in Bathurst is expected to sell for circa $11 million, one of the largest prices the country has seen for the asset class, beyond the primary markets of the Sydney, Melbourne, and Brisbane CBD’s.

Located at 234 Gilmore Road (Cnr Jacks Close), the purpose-built centre was completed in 2019 and has an annual income of $653,357 annually.

The modern and purpose-built service was complete in late 2019 and features a 15-year initial lease term with further options through to 2044. The property returns $653,357 per year and is fully leased to G8 Education – Australia’s largest providers of childcare services. G8 currently care for more than 46,000 children across 440+ centre across the country.

The subject property is located adjoining a DA approved seniors living project which will comprise 89 lots on completion. With significant earthworks already complete, the project will substantially bolster investment value as surrounding developments within the high growth municipality continue to occur surrounding the subject property – many or all of which will be complete when the initial lease term expires (circa 11 years).

The centre is fully leased to G8 Education, Australia’s largest providers of childcare services, on a 15-year lease, with options extending until 2044.

CBRE’s Australian Healthcare and Social Infrastructure team of Marcello Caspani-Muto, Sandro Peluso, Jimmy Tat, Xavier Rahme and Nicholas Young are managing the sale on behalf of the private group of owners via an Expression of Interest campaign closing during the third week of July.

“Given the volume of both lease tenure and depreciation benefits annually for the centre, it’s important our team help demonstrate the financial viability of services at this price point from an operational and cashflow perspective. This asset demonstrates a strong rate of return in the current interest rate environment,” Mr Caspani-Muto said.

Mr Peluso added, “This investment stands on its own two feet under today’s economics, but many investors are also aware the current elevated interest rate environment may be temporary. Regardless of whether this situation changes within the next six to 18 months, the underlying fundamentals remain strong. Annual returns continue to rise, aided by a fixed 3% increase that helps stabilise the interest rate environment.”

“Bathurst is a well-regarded and rapidly growing part of NSW and there exists significant local wealth and businesses in the area. We are expecting good nationwide buyer interest.”

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