Childcare centre sells at sub three per cent yield
A Central Coast childcare centre has traded for $7.5 million setting a state record low 2.99 per cent yield for an asset of this type.
The 72-place complex on 2009 square metres at 4 Nowack Avenue, Umina Beach (pictured, top), is tenanted to Affinity Education which, with options, can stay until 2025.
Burgess Rawson’s Keiran Bourke and Michael Vanstone said the facility enjoys a long history of 95pc occupancy – and has a waiting list.
The agency also yesterday sold a Sydney childcare centre – 49-51 Boomerang Street, Turramurra – for $8m, reflecting a 3.3pc return.
Sixteen suitors contested for that property, which traded for 30pc ($1.85m) over reserve.
The assets were offered as part of a three day bulk auction event in which 49 out of 54 assets traded for a total of $189m (story continues below).
Seven investments sold mid-campaign.
The average sale price was 13pc over reserve; the blended yield was 4.7pc.
Nearly 550 buyers were registered.
Yesterday we reported six properties in the portfolio, offered with leasebacks, sold for a combined $30.35m.
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