An investor has purchased a childcare centre in Geelong for $3.6 million on a circa 6% yield.
The centre at 337-339 Charlemont Road is located in the new residential sub division of Armstrong Creek, approximately 10kms from the Geelong CBD. It is leased to Eclipse Early Learning Group on a brand new 10+10+10-year lease to 2047. The 992sqm purpose-built facility is licensed for 118 places and sits on a prominent corner location.
Mr Twelftree said the bidding opened at $3 million which rose quickly to the eventual sale price of $3.6 million. The building rate was exceptionally high at $3,629 and a land rate of $1,398.
“The board room auction is a great way to sell properties if they are remotely located. The CBRE Victorian Health, Aged & Child Care team has been on a role selling child care investments, with three being sold in the last three weeks. The team has been busy educating the market which has been reflected in some recent deals namely the largest ever childcare sale of an off-plan centre in Malvern East for $16.9 million on a yield of 4.2%,” Mr Peluso added.
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