Investor demand for childcare centre investments drives off market Queensland sale

Strong interest in childcare centre investment opportunities has underpinned the sale of a strategically located South East Queensland asset on a tight yield of just 4.8%.

CBRE’s Josh Scapolan and Sebastian Fahey negotiated the off-market, $4,020,000 sale of the Strawberry Bush Early Learning Academy Centre at Helensvale, which was snapped up by an interstate investor.

Mr Scapolan said the centre’s growth corridor location and 15-year triple net lease, with options to 2041, had been key investor drawcards.

“The childcare property sector has been one of the strongest markets nationally, with yields compressing by between 125 and 175 basis points in the past two years, underpinned by long lease terms and limited childcare opportunities in the market” Mr Scapolan said.

“This asset was transacted to an interstate purchaser who had missed out on one of our previous childcare centre campaigns and aggressively pursued this opportunity to make sure they didn’t miss it.”

Mr Fahey noted that the Helensvale centre was situated 15km from the Gold Coast CBD and was the second Gold Coast childcare asset CBRE had sold in the past three months. This included Sanctuary Early Learning at Maudsland, 21km from the Gold Coast CBD, which sold in late 2021.

“After selling Sanctuary Early Learning $8,154,000 on a yield of 4.97%, transactions for Gold Coast childcare assets are now regularly achieving sub 5% yields,” Mr Fahey said.

“We are continuing to see yield compression in the childcare centre sector fueled by the weight of capital in the market from Self-Managed Super Funds, local and interstate private investors.”