Burgess Rawson has sold an impressive $43.5 million this month in early education centres, as investor demand for this asset continues to intensify.

Burgess Rawson director, Michael Vanstone, said the blended yield was 5.18%, down from 5.3% achieved in the March quarter.

“Early education properties are predominantly sought after by high net worth investors seeking secure, long term bricks and mortar assets.

“The federal government’s confirmation of additional childcare support had also strengthened demand for this asset,’ he said.

A total of 10 sales were achieved in under a week including a vacant childcare centre in East Hills, NSW, which was sold to a local operator for $3.977 million. If leased at the projected annual rental of $176,000, the property would return 4.43%. The sale follows the record result achieved for the Goodstart Early Learning Centre in Mosman which sold for $4.41 million on a yield of just 2.75% – the lowest ever recorded for this asset.

In WA, Children’s House of Learning in St James sold for $1.18 million showing a yield of 4.66% while Lex Education in Forrestfield sold for $3.701 million, reflecting a yield of 5.78%.

In Melbourne, Montessori Academy in Forest Hill sold for $6.9 million showing a yield of 5.1%, while Story House Early Learning Centre in Melton sold for $5.75 million, reflecting a yield of 5.3%.

Queensland saw the Affinity Education Centre in Taigum sell for $7.125 million providing a return of 5.33% while Mayfield Early Education in Gordonvale sold for $4.775 million showing a yield of 5.5%.

Mr. Vanstone said increased interest rates have not dampened demand for these assets, with the market set to remain hotter than ever.

“While the Mosman property had the added bonus of a blue ribbon address, the East Hills property showed the strength of emerging growth suburbs, spurred on by increased development and immigration,’ he said.

CommercialReady