A Geelong childcare centre with a caffeine kick could be the rush investors are looking for at a major commercial property auction event this month.
The Belmont property features a partial lease to booming drive-thru coffee company Bean Squeeze, sweetening the deal on an already enticing investment opportunity.
Home to local boutique childcare provider Elements Early Learning, the site at 322-328 High Street lies within proximity to the Geelong CBD and is secured on a 15-year net lease to 2029, with three further five-year options to 2044. The front section of the 4449sqm site is leased to Bean Squeeze for five years to 2025, with five additional five-year options to 2050.
The leases return a combined $379,806 per annum plus GST.
Burgess Rawson childcare specialist Natalie Couper the length of the leases and tenant history placed the asset among the best in show at Burgess Rawson’s Investment Portfolio Auction event, to be held at Crown Casino on June 23.
“Elements Early Learning is exceptionally well regarded, as evidenced by their 100% occupancy and very long waitlist at this centre.
“From an investment security point of view, Elements is well established with a long trading history and have an incredibly strong following with a long line of families trying to get their children into one of their locations.
Natalie added that Bean Squeeze has 10 locations throughout Geelong, making them a well known name in the region.
“They’ve been at this site a long time and the lease is effectively a ground lease, the building is owned by the tenant, so there’s no obligation on the landlord for any maintenance or repairs moving forward.”
The property benefits from an unrivalled location for childcare, with 10 schools within 1.5km, while Belmont town centre and the Coles and Woolworths-anchored Waurn Ponds Shopping Centre are both just moments up the road.
“It’s also within easy access of the Geelong Ring Road, Bunnings, Harvey Norman and the Geelong Homemaker Centre,” Ms Couper said.
She also pointed to the site’s future potential as another major drawcard for investors.
“It’s a large site, there’s the potential to subdivide in the future, offering an additional land banking opportunity, given its extensive highway frontage.”
The property’s auction comes amid a bumper period for the childcare property market, with Federal and State Government support continuing to drive heavy interest from buyers.
Burgess Rawson sold five centres at a 100% clearance rate at its May Portfolio Auction, with four of them on yields below 5%.
“There certainly has been increased appetite from new inquiry that wouldn’t normally consider childcare for investment,” Ms Couper said.
“Many of them are sophisticated buyers from outside the sector who are now looking at childcare as an alternative to add to their portfolios.”
Burgess Rawson’s Investment Portfolio Auction will be held in the River Room at Crown Casino on Wednesday, June 23.
Inside 322-328 High Street, Belmont, 3216
Outside 322-328 High Street, Belmont, 3216
