Tas childcare unicorn sold for seven-figure sum
Childs Play Early Learning at No.1 Rowitta Rd, Lindisfarne.
SIX registered bidders threw their hats into the auction ring in an attempt to secure this Tasmanian asset.
No.1 Rowitta Rd, Lindisfarne was a star performer at the August Burgess Rawson Portfolio Auctions, selling for $4.915m at a 5.43 per cent yield.
Burgess Rawson partner Matthew Wright said the property was purchased by a Sydney-based investor with connections to Tasmania.
“It was a terrific result,” he said.
“It’s the first Tasmanian childcare asset we have had publicly on the market for sale in about a decade.”
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No.1 Rowitta Rd, Lindisfarne.
Inquiries for the property, which is on a long lease to boutique operator Child’s Play Learning, came from all over Australia.
Mr Wright said this included strong inquiry from Tasmanians.
“There was a lot of Tassie-based interest, which underpins how attractive this asset was. I think locals especially understand how strong of a catchment Lindisfarne is and the lack of other opportunities to develop a new site comparable with this property.
“And with 250 families on the waiting list for Child’s Play Learning, that is phenomenal; that is a rarity anywhere in Australia.”
No.1 Rowitta Rd, Lindisfarne.
The Lindisfarne centre’s operator has a 20-year net lease, with 18 years left, including options to 2062.
The 2170sq m property’s net income is just shy of $260,000 per annum, plus GST.
On auction day, auctioneer David Scholes saw the bidding get underway at $4.65m.
The next bid lifted it to $4.7m, then $4.725m.
“You’re not allowed to quit after one bid,” he joked with a bidder in the room.
The price pushed up to $4.75m and $4.8m.
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No.1 Rowitta Rd, Lindisfarne.
“$4.81m is the bid. Can I make it $4.85m? This is a beautiful Hobart suburb with a scarcity of quality childcare assets,” Mr Scholes said.
“First … second …”
A bid of $4.82m beat the final call, before another bidder topped that at $4.83m.
Another 10 came in to lift the price to $4.84m, and then quickly to $4.85m.
Bidders put forward another 5. Then another 10. Another 10 …
“Now at $4.9m, $4.9m is the money. Our vendor is happy, we are playing for keeps,” he said.
Going once, going twice … $4.905m, $4.915m.
“First, second, third and final. Done, congratulations.”
Auctioneer David Scholes at the Burgess Rawson portfolio auctions in Melbourne.
Across the three-day event in Melbourne, Sydney and Brisbane, over $131m worth of assets were transacted.
Over 3000 people viewed the auctions from across the globe, and 31 properties were sold under the hammer.
Among the highlights was Goodstart Early Learning in SA, which sold for $2.23m and a sharp 3.11 per cent yield, and a fast food portfolio in NSW — featuring McDonald’s and Hungry Jacks — which achieved a combined $37.75m.
The overall clearance rate was 72.09 per cent.
