Sales to private investors highlight strong demand for secure investments at affordable prices.

Four of the five Victorian properties in the $40 million national portfolio of leased childcare centres owned by Australian Education Trust (ASX: AEU) sold at auction yesterday, and the final property is expected to sell within the next few days, as private investors jumped to secure the coveted sites.
The four centres sold at auction for a total realisation of just over $4million, all to separate private investors, and several parties have expressed strong interest in the remaining one, which is expected to sell within a few days.
Colliers International Associate Director of Investment Sales and Victorian State Coordinator of the portfolio, Tim Grant, said the “Clever Investments” portfolio generated strong interest throughout the campaign.

“These properties offer an institutional grade investment opportunity at an entry level price,” Mr Grant said.
“It’s unusual to find a mix of these strengths at this price level, and as such, the properties attracted strong interest and competition amongst private investors.”

The properties have long-term (average 10 year) leases secured by way of bank guarantees, annual rent reviews, tax depreciation benefits, and large land footprints providing the security of typically high underlying residential land values (STCA).
Mr Grant said one of the private investors was a group who already holds another two childcare centres in their portfolio; while a number others were purchased by developers initially as passive investments, with a view to potential residential development at a later date.

The sales follow further success in the portfolio nationally, with 13 of the properties sold to date for a total of around $12 million.

In South Australia and Western Australia, all properties have sold prior to auction or are in the final stages of negotiation.

While the resilience of the childcare sector was tested in 2009, it emerged with flying colours.
Strong population growth and low levels of unemployment are expected to continue to fuel demand in the sector.
Government studies indicate that for every dollar spent on childcare returns approximately $8.11 as a total economic benefit and also returns approximately $1.86 in taxes to the Federal Government.

For further information and to view the properties, visit: www.cleverinvestments.com.au

Tags: childcare sites, clever buyers, private investors, secure investments