Little Kindy Bathurst sold early - Burgess Rawson

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Oct 3, 2024

Little Kindy Bathurst sold early - Burgess Rawson

A premium childcare property in Eglinton, Bathurst sold prior to auction, facilitated by Burgess Rawson agents Kieran Bourke and Michael Vanstone.

Burgess Rawson

Eglinton Bathurst sold by Burgess Rawson

A private investor has secured a premium childcare property in Eglinton, Bathurst for $2.3 million ahead of its scheduled auction.

Burgess Rawson agents Kieran Bourke and Michael Vanstone facilitated the deal, with the final sale price reflecting a strong yield of 4.79%.

Located at 25 Alexander Street, the asset is secured by a new 15-year net lease extending until 2039, with further options available until 2059. Investors were drawn to the property’s attractive fixed annual rent increases of 3.5%.

Operated by Little Kindy, a well-established childcare provider with 16 locations, the centre has been fully refurbished and maintains 100% occupancy across its 29 long day care places. The property sits on a land area of 812 sqm and has a net annual income of $110,200.

The location, adjacent to a café and a local primary school with approximately 448 students, enhances its appeal. Situated in a growing suburb, Eglinton’s population is forecasted to expand to 325,000 by 2041, positioning this asset for future growth.

Mr Bourke said the combination of long-term security, a reputable tenant, and the asset’s prime location made this an appealing investment opportunity.

Michael Vanstone added, “With a growing population and an undersupply of childcare in the area, assets like these are a rare and highly sought-after opportunity for investors.”

Childcare centres continue to be a highly demanded asset class in Australia, heavily supported by Federal and State government funding. In the 2023-24 period, the Federal Government allocated over $11.6 billion towards early childhood education, supplemented by an additional $4.7 billion through the Cheaper Child Care Reform.