BRISBANE– A newly opened childcare centre, the Kenmore Hills Early Learning Centre, has sold for $4,742,671 to a local investor following a successful expressions of interest campaign by JLL's Sam Byrne and Tim Jones. The sale price reflects a yield of 6.14%.
The centre was offered with a long 10-year lease with a net annual rent of $291,200 per annum, with the tenant responsible for all outgoings including land tax and management.
Speaking about the sale, Mr Jones said, "The response to the campaign was extremely strong and despite some prospective buyer groups not engaging given the centre was the first for the operator, the end yield highlights the continued demand for quality centres in metropolitan locations."
"The brand new centre has been built to a high specification to create a best-in-class childcare facility that is licensed for 91 Long Day Care places. The developer made a significant investment to ensure the improvements and features of the centre were a true point of difference to nearby competing centres, including premium Playscape facilities."
Now open for just over seven months, the Kenmore Hills Early Learning Centre has experienced strong demand with numbers increasing weekly. The centre caters for from babies to children up to five years.
Mr Byrne said, "The developers of the centre made a purposeful decision to deliver a location in Kenmore Hills as the suburb's demographics supported the long term need for childcare places."
"With improved public transport and significant infrastructure investment improving accessibility, the catchment epitomises suburb living, which has led to increased presence of young families in the area."
Providing insight on the childcare investment market, Mr Jones said, "We foresee continued buyer demand in childcare centres as private and institutional capital seek more exposure to alternate investment sectors. Buyers are becoming more sophisticated and the importance of the operator experience and quality is critical in driving yield compression."
