Two childcare centre investments hit market

URBAN development is more than building new streets and houses in the region, with a market opening up for investing in childcare centres.

Two more in the Geelong region are being offered in a portfolio of three properties to be auctioned in Melbourne on September 12.

The Eclipse Early Education Group centres at Curlewis and Torquay, with the third at Eynesbury, near Melton, have new 10-year leases with two more 10year options.

Burgess Rawson associate director Adam Thomas said childcare assets were among the fastest growing commercial real estate class in the Australia market.

“Demand over the past three to four years continues to surpass expectations,” he said.

“Torquay, Curlewis and Eynesbury centres are all situated in rapidly expanding suburbs with exponential population growth.

“They are both modern with long-term leases in place and access to major retail hubs, transport routes and expanding school zones.”

Mr Thomas said demand for childcare assets was driven by changing social needs, leading to an increase in supply and high investor interest. The class is popular due to its landlord friendly long-term leases and strong covenants underpinned by national operators. Childcare centres at Curlewis and Torquay are part of a portfolio offered for auction.