Toowoomba CBD’s Grow Early Education Centre sells through Stonebridge Property Group for $7.4m

A “high net-worth” investor has secured one of Toowoomba’s newest childcare centres in a multimillion-dollar deal — and it’s not the only one that could change hands soon.

One of Toowoomba’s newest and most centrally-located childcare centres has been snapped up by an interstate investor for a whopping $7.4m.

The Grow Early Education centre on Hill Street in Toowoomba City, directly opposite Grand Central Shopping Centre, sold through commercial agency Stonebridge Property Group this month, producing a yield of just under 5.5 per cent.

The 119-place centre, which was built just a few years ago by Grand Central’s owner Queensland Investment Corporation, currently features a net income of just over $400,000 and three per cent annual rent increases.

Agent Tom Moreland, who handled the sale with Michael Collins and Thomas Proberts, said the sale suggested investors had plenty of confidence in Toowoomba as a commercial asset centre.

The Grow Early Education centre on Hill Street in Toowoomba City has sold to a private investor for $7.4m through Stonebridge Property Group.

“The buyer has got some family connections locally in Toowoomba, so was very aware of the constant growth fundamentals of Toowoomba and had a lot of confidence in the region, which was acknowledged by the broader market nationally through our campaign as well,” he said.

“It’s arguably one of the strongest performing regional locations in the country from a commercial property perspective.

“Whether it’s childcare or sectors like fast food, fuel and convenience, retail, there’s still a lot of demand for these relatively easy managed single tenant type assets (in Toowoomba) that provide people with long term income and cash flow.”

The sale comes after Mr Moreland, Mr Collins and James Freemantle listed the Goodstart Early Learning centre on Healy Street in South Toowoomba up for auction on April 9.

The 74-place facility is located within a residential neighbourhood and features a lease agreement with options extending until potentially 2055.

The Goodstart Early Learning centre in South Toowoomba is heading for auction through Stonebridge Property Group.

“You’ve got Goodstart, which are Australia’s largest childcare provider, so it’s a very blue chip-style tenant, and they’ve committed to the site for a 15 year lease for another 10 years,” Mr Moreland said.

“The rental on that particular property we believe provides reasonable opportunity in the short term for further growth.

“There’s some reasonably short-term market reviews across this property, which will likely lead to immediate income growth.

“Our firm has had the pleasure of selling north of $40 million worth of childcare in Toowoomba in the last few years and each of those assets have sold with no frills, so we’d really expect this to be pretty hotly contested and sought after.”

The property will be offered through Stonebridge’s portfolio auction on April 9 from 11am.