A BRAND-NEW childcare centre in the thriving Western Sydney suburb of Schofields has sold at auction for $5,308,000 under the hammer at 5 Lillyana Street.
The asset, that came with an 877sq m* building size on 1,564sq m* land area, was leased to well-known childcare provider Young Academics.
The property was marketed and sold at auction by Ray White Western Sydney Associate Director Victor Sheu, Senior Sales Executive Jai Sethi, and Principal Peter Vines.
“The team still feels like there’s a genuine lack of investment opportunities in the market that produces stable returns, so this opportunity ticked a lot of boxes,” Mr Sheu said.
“There is difficulty in accessing funds, but for individuals and groups that are able to, capital is extremely cheap right now and stable investment assets like 5 Lillyana Street provide investors with an asset to sit in their portfolio generating constant income with year-on-year growth.”
“Despite COVID-19, some areas like Schofields and newly-established growth centres are still widely popular. The centre performs extremely well and being a new centre, depreciation is also extremely attractive for investors,” Mr Sethi said.
“Childcare Centres with reputable operators are very well sought-after and often seen as a safe haven for investors seeking a stable return.”
“The campaign engaged strong interest with over 70 enquiries, 15 private inspections, and 21 contracts issued – and it attracted four registered bidders on the day,” Mr Vines said.
“The property, that came with a 10+10-year triple net lease, sold at a 5.56 per cent yield to a local Asian high net worth individual looking for a stable income-producing asset.”