Childcare centre with long term lease sold for $900k

28 JULY 2010, Melbourne –
Childcare centres are proving to be an ongoing hit with investors looking for secure income streams, highlighted by the sale of a centre with a secure long term triple net lease in Langwarrin for $900,000 to a private investor.

The sale of the centre at 41 Gumnut Drive, Langwarrin represents a 8.66% return, according to marketing agents Tim Grant and Jeremy Gruzewski at Colliers International.

Mr Grant said the property was sold with an initial lease term of 15 years with two further five year options.

“The triple net lease means the tenant is responsible for all outgoings, land tax and capital improvement works to the building,” Mr Grant said.

“In addition, this property is zoned residential 1 zoned site, which opens up the potential option for long term development of the site,” he said.

“In the meantime, the property provides a secure income stream, offering an institutional grade investment opportunity at an entry level price,” Mr Grant said.

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.

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Colliers International is proud to be the Real Estate Institute of Australia’s Commercial Agency of the Year 2007, 2008 and 2009 – setting a benchmark for industry excellence.