NERANG CHILDCARE CENTRE SOLD FOR $6M
Newly built centre with 114 places sells to Brisbane-based investor in sign interest in sector remains strong despite oversupply fears
ALISTER THOMSON A NEWLY built childcare centre in Nerang has been snapped up by a Brisbane-based investor for $6 million in a sign that strong interest remains in the sector despite fears of an oversupply.
The 114-place centre at 169 Beaudesert-Nerang Rd was built and sold on a 6 per cent yield by Southport-based Imagine Education.
Imagine will lease back the centre for 20 years with two five-year options and paying $380,000 per annum plus all outgoings.
The property was bought by Imagine for $539,000 in 2016 from the Anglican Diocese of Brisbane.
The 3397sq m block contains an enclosed area of 801sq m including six activity rooms and cot room as well as four bathrooms. Outside are three play zones and two store rooms.
Savills Gold Coast’s Kevin Carmody said the property had been taken to market in July while the centre was under construction.
He said an offer from the Brisbane-based investor for “circa $6 million” had gone unconditional and was due to settle next month.
“The buyer was attracted by the quality of the tenant and the facility,” he said. “New builds with good operators in the right areas are receiving strong inquiry.”
He said new government grants to working parents were expected to drive demand in the childcare sector.
Mr Carmody said it was the buyer’s first investment in a childcare centre with previous purchases being in neighbourhood shopping centres and other commercial asset classes.
The childcare sector is struggling with an oversupply of centres, which Gold Coast giant G8 Education has pointed towards a number of times after releasing its results. Earlier this year G8’s share price plunged when it said “unprecedented” market conditions were likely to affect its earnings until at least mid next year.
Imagine Education is a vertically integrated education provider, which offers child care courses and onsite training at its Southport campus at its two long-day care centres.