Stonebridge’s June national auction sold $40m worth of properties
A childcare centre on Pittwater Rd, Brookvale, in Sydney which sold for $6.77m.
Childcare centres continue to attract demand from high net worth investors seeking quality, long-term leased assets, as yields remain firm despite interest rate rises.
Stonebridge’s national investment sales June portfolio auction campaign had a 100 per cent clearance rate, with more than $40m of property selling at or before the event with an average yield of just 4.92 per cent.
Childcare centres remain a favourite, with four facilities selling for a combined total of $20m. A modern facility on Pittwater Rd at Brookvale in Sydney received 25 bids before selling under the hammer to a Sydney-based Chinese investor for $6.77m, at a 4.9 per cent yield.
Stonebridge partner Michael Collins said metropolitan Sydney childcare offerings were generally scarce and highly sought-after. “The Brookvale result and depth of bids is testament to this,” he said.
“The broader childcare market continues to outperform other freestanding sectors in popularity, as investors take note of ever-increasing bipartisan support for the sector, and the return on investment childcare services provide.”
A childcare centre on Pittwater Rd, Brookvale, which sold for $6.77m.
Three facilities sold prior to auction:
• A new Imagine Childcare Centre at Maroochydore on Queensland’s Sunshine Coast, selling for $6.4m (5.08 per cent yield);
• A Goodstart Early Learning Centre at Keilor in Melbourne, sold for $3.05m (4.46 per cent) and;
• A G8 leased facility in Queanbeyan, near Canberra, for $3.55m (4.98 per cent).
Stonebridge partner Tom Moreland said the agency’s data indicated that prime freestanding assets in the sub-$10m mark have only softened by about 50 basis points since the peak of the market 12 to 18 months ago, with childcare and freestanding retail investments being the most resilient.
“This softening is not commensurate with the 400 basis points of movement in interest rates, as private capital continues to view long-term leased commercial real estate assets as safe-haven, annuity-style investment vehicles,” he said.
The new Imagine Childcare Centre at Maroochydore on Queensland’s Sunshine Coast which sold for $6.4m.
In other deals, freestanding retail investments were also keenly sought, with a Repco leased asset in Pakenham, Melbourne, selling 35 per cent and $605,000 above reserve for $2.405m, at a low 4.36 per cent yield.
The property sits in the heart of a bustling retail precinct and carries a renewed three-year lease to a subsidiary of New York-listed GPC with no further options.
Stonebridge partner Rorey James said 10 registered bidders participated in the Repco auction, with five of these groups and the ultimate buyer sourced via Stonebridge’s Asia practice.
“This signifies the ongoing confidence shown towards premium, income-producing assets, by this buyer profile in particular,” he said.
Aa Yokohama-anchored tyre & auto and fishing retail outlet in the inner Brisbane northern suburb of Stafford sold for $4.29m.
In Brisbane, a Yokohama-anchored tyre, auto and fishing retail outlet in the inner northern suburb of Stafford received strong interest during the portfolio campaign before selling for $4.29m on a 5.15 per cent yield. The property was offered for sale by active Brisbane-based developer OneFin.
Rounding out the portfolio highlights was a BP service station at Wollert in Melbourne which sold prior to portfolio launch. The asset provides a new 15-year lease to BP’s Australian head company and traded for $6.76m on a 5.16 per cent initial yield.
Stonebridge have a further $50m of assets under contract or negotiation as part of their June portfolio.
