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Dee Why Childcare Centre Snapped Up By Investor

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A purpose built childcare centre in Dee Why has sold for $6 million to a private investor at auction this week.

The two-storey centre, approved for 86 childcare places, was custom built in 2009 on a 1672sqm block and was sold by Brian McInally and Corey Beauchamp of Colliers International.

“The asset sold on a yield of 5.97 per cent via a sale and leaseback arrangement,” said Mr McInally. “While we’re seeing yields compress in this asset class, childcare properties are still highly lucrative for investors when compared to other property classes.”

Located at 63 Lynwood Avenue, the centre is privately run, with the parties agreeing to a 10-year lease with a 10-year option.

The centre was bought by a private investor, who has a portfolio of petrol stations and was looking to diversify this portfolio.

“Childcare is an appealing option for many investors,” said Mr McInally. “With a depth of operators looking for purpose built centres in strong growth areas such as the Northern Beaches, childcare centres are proving highly lucrative for a range of investors.

“Demand for childcare places will continue to grow. Our population growth, combined with the strong diversity push to encourage more mothers to return to work means that childcare places are hotly contested. This demand will fuel further growth in childcare property.”

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Article originally posted at: https://https://theurbandeveloper.com/articles/dee-why-childcare-centre-sells-for-6-million