Adelaide

Adelaide childcare assets on top of investor's list

CBRE has sold a McCracken childcare centre, leased to ASX-listed G8 Education Ltd, for $2.2million.

30 Jan 2018

CBRE has sold a McCracken childcare centre, leased to ASX-listed G8 Education Ltd, for $2.2million. 

Mitch Curnow and Ben Heritage were appointed to market the 17 Alexander Street investment property, which sold at a sharp yield of 6.76%. Mr Curnow said the property was well-received by the market, with the campaign attracting over 30 enquiries from both local and interstate parties. 

“The strength of Adelaide’s childcare market is reflected in the result achieved for 17 Alexander Street. The yield is some 300 basis points sharper than when it last sold in 2011, showing a clear change in market sentiment,” Mr Curnow said. 

“While strong results on the eastern seaboard during 2015 and 2016 drove an initial surge of childcare listings across Adelaide, we are now seeing consistently strong transactions for both established and ‘new-built’ centres.”

Mr Curnow added: “I expect in 2018 we will see a sustained level of stock in the childcare market, with many looking to capitalise on the buoyed results achieved in 2017.”

G8 Education has nine years remaining, with two five-year options, on its lease over the 1,997sqm land holding, offering the buyer a net rental income of $148,897 per annum. 

With over 400 centres nationally, G8 Education Ltd comprises some of Australia’s most recognised childcare operators including Early Learning Services, Kinder Haven, Community Kids and World of Learning. 
 
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.