One of Brisbane’s largest long-day childcare portfolios, comprising 14 centres and underpinned by top tier operator Avenues Early Learning Centres, has been listed for sale and is expected to reach a total circa $102 million.
CBRE’s Tom O’Driscoll, Chris O’Driscoll and Darren Collins have been exclusively appointed to manage the sale of the centres, which are spanned within a 15 kilometre radius of the Brisbane CBD and offer more than 36,600 sqm of combined land.
The first stage of the portfolio sale will include five childcare centres located in Aspley, Carina, Jindalee, Mcdowall and Parkinson with a total value of approximately $35million. Each centre is leased to Avenues Early Learning with a 20-year leaseback plus two additional 10-year options.
The largest child care centre for sale at 65 Algester Road, Parkinson is situated on a 4,575sqm site. It offers up to 200 places and operates at an occupancy rate of 100% - the strongest occupancy for long day care in the region.
The second largest child care centre is located at 93 Zahel Street, Carina and has a total land area of 3,503sqm. The centre allows for up to 135 places and operates at a 98% occupancy rate.
In Aspley, 339 Maundrell Terrace centre is located on a 1,980sqm site and within a low density residential zone. Similarly, the Mcdowall centre at 51 Landis Street totals 1,159sqm and is within low residential zoning. Meanwhile, the 110 Burendah Road, Jindalee centre is located on a 1,797 sqm site and in Community Use Zoning 2. It allows for up to 90 places and has the third highest occupancy rate of the five centres, at 97%.
Buyers have the opportunity to purchase the centres individually or in one line.
CBRE’s Tom O’Driscoll said the vendor’s choice to sell the properties reflects the depth of demand from the market for childcare assets.
“There is an overwhelming interest in strong performing childcare assets from high net worth privates, syndicates and small institutional groups both local and off shore. This is an exciting opportunity for buyers to acquire a quality diverse portfolio and some of the best performing childcare assets in Queensland,” Mr O’Driscoll said.
“This is a strong long-term annuity for investors underpinned by a top tier operator. The average occupancy rate of 95% plus strong year on year net profit growth reflects the strength of Avenues Early Learning and provides an opportunity to land bank long term cashflow.”
Last financial year, the total net profit turnover was circa $15 million for the complete 14 centre portfolio.
The properties are for sale by way of International Expressions of Interest, closing November 22, 2017.
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