Childcare centres have been the most sought after asset of the year as high-demand for the assets led a development site in Northmead to sell almost $2 million over reserve.
Located at 65 Moxhams Road, the 804sqm property sold under the hammer for $5.325 million on Thursday.
The site is approved for a 63 place childcare centre.
The property was sold by Ray White Commercial Western Sydney director Joseph Assaf and senior sales executive Jai Sethi as part of a distressed sale.
Mr Assaf said the site had attracted a lot of interest with 30 registered bidders at auction that delivered a record $84,523 per place rate that has never been seen before.
“Interest came from local builders and developers, but mainly childcare operators,”
“Being located directly opposite Northmead Public School and under supply of childcare centres in the area created a lot of interest from various buyers who participated at the onsite auction.
“The auction turned into a bidding war resulting in an unprecedented result.”
The winning bid went to an owner operator.
A second site, development approved for a 68 place childcare centre, at 724 Victoria Road, Ermington, sold under the hammer for $4.5 million on Thursday.
The property was sold with a pre-commitment to Mini Masterminds on a 10 + 10 + 10 years lease at a rental of $329,800 per annum net.
The property was sold to a local investor with the intention to develop and capitalise on the childcare market.
“Undoubtedly, childcare has been one of the most desirable asset classes of 2021,” Mr Sethi said.
“This is due to a number of factors including ongoing government support, robust commercial leases and strong interest from childcare operators.
“We believe the strong performance of childcare assets will continue into the new year.
“Ray White Commercial has a huge database of child care operators who are actively seeking opportunities for their business expansion.”