Childcare owner sees double as investor swoops twice

A private investor from Victoria has snapped up two child care centre investments in South East Queensland from the same vendor totaling $6.12 million.

James Crawford, Director of Investment Services at Colliers International who handled the sale of both centre said they were leased to a major operator in Affinity Education Group.

Earlier this year a 75 placement Southport Bambini Early Childhood Centre on the Gold Coast sold for $2,200,000 on a yield of 6.75 per cent in an off-market transaction.

Imagine for Children South childcare centre in Toowoomba settled last month for $3.92 million reflecting a net yield of 5.9 per cent. The 25 year lease expires in 2031 with a net income of $230,797 per annum.

Mr Crawford said the buyer was attracted to both assets due to the long lease terms and the Government funding associated with the child placements.

“Despite selling off five Gold Coast commercial properties between 2010 and 2012, the buyer had decided to re-invest in Queensland as commercial property returns were far superior to the current term deposit rates on offer. The 5.9 per cent yield demonstrates the continued demand for this type of commercial investment.”


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