Childcare demand underpins $1b in learning centre sales

Commercial real estate agent says sales show no sign of slowing with Mackay centre fetching $1.97 million

Walkerston Daycare sold for $1.97 million in August last year. Picture: Contributed

A WALKERSTON early learning centre has sold for almost $2 million in what a commercial real estate agency says is a sign of ongoing demand in the sector.

Burgess Rawson sold 328 freehold childcare properties over the past decade with 73 in Queensland selling for a combined $208.1 million.

This included the Walkerston Daycare which sold for $1.97 million in August last year.

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Burgess Rawson principal Pat Kelly said the childcare properties were a strong investment unscathed by the COVID-19 pandemic.

“During the national peak of COVID-19, the government’s importance on supporting the childcare industry was made very clear,” Mr Kelly said.

“Some of the earliest specialist assistance packages (were) directed to the industry, a strong pull for investors seeking reliable assets for the long-term.”

Walkerston Daycare sold for $1.97 million in August last year. Picture: Contributed

Mr Kelly said family demand for childcare would continue to fuel investor demand.

“There is no question there are more and more families seeking access to quality childcare, with a strong economic return of workforce participation far outweighing the cost to assist in childcare funding,” he said.

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The company’s 2020 report forecast the Australian childcare industry would grow by 2.2 per cent to $12.4 billion over the next five years.

“Childcare as an asset class continues to offer attributes that investors are favouring such as long net leases, quality tenants underpinned by land value and intrinsic business value,” the report stated.

“As a result, we predict childcare being a favourite for the post COVID investors’ world.”

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