Confidence High in Childcare Sector

Courier Mail article printed in PRIME SITE - Friday 28 July 2017

Written by Chris Herde

A BRISBANE-based development group made a $500,00 plus profit in less than a year after refurbishing and finding a tenant for a childcare centre north of Brisbane.

A Sydney based investor paid $1.47 million under the hammer for the Journey Early Learning Centre at 55 Fortune Esplande South after a marketing campaign by Burgess Rawson's Adam Thomas.

According to CoreLogic the centre changed hands in August last year for $900,000 when it was bought by Smithfield Property Group virtually vacant position.

The company then completed an aesthetic refurbishment and secured Journery Early Learning on a 15 year lease and 3% rental increases.

Mr Thomas said the centre, situated on a 1190sqm site, was licensed for 55 long day-care places. The sale realised are you would of just over 6 percent. 

"We're experiencing increased investor confidence in this sector," he said. 

"There was competitive bidding on the auction day in Melbourne and they were attracted by the secure tenant and a pretty good price point as well."