Demand remains high for childcare centres

Canberra’s love affair with childcare centres is showing no sign of wavering as another site in Rivett  is set to go to auction on September 13 with a commitment from a quality, long-term operator already in place.

Selling agent  Guy Randell, managing director of Burgess Rawson, says a building cost has also been defined with an experienced childcare builder that would further add to the investment appeal of the 1943 square metre site.

“There has been a lot of media reporting recently that’s questioned whether the market for childcare centres is in under-or-over supply,” he says.

“The reality is, it is the market – parents – who are demanding more of them and they want them to be run by quality, proven operators who offer great early childhood learning programs.”

Burgess Rawson is a relatively new entrant into the Canberra market, but it is a leader in childcare sites in Australia and has sold some 150 in the last three years.

Randell says a further 10 childcare sites are scheduled for auction during the rest of the calendar year.

Expressions of interests on other proposed childcare centres had already attracted some 30 applications from operators to run those.

“From an investor’s perspective, childcare centres represent a safe, long-term investment that is enhanced by the quality of the operator,” Randell says.

“We’re getting a lot of interest from investors, not only regionally and nationally, but also from overseas.”

Randell says demand is not only coming from new centres like Throsby and Gungahlin, but also from areas undergoing urban renewal.

“Some of the older centres may not be able to offer the facilities and programs that parents are now demanding and that creates demand for new sites,” he says.

“There’s no doubt about the fact that we are in a strong growth phase.

Rawson says there is a market need: “There’s a pool of quality operators and there are buyers who recognise the opportunity in a low interest rate economy along with the value in a long-term investment with steady returns.”

No. 1 Rivett Place, Rivett, will be auctioned at Doltone House on Tuesday, September 13, at 11am by Burgess Rawson Canberra, through Guy Randell. Inspections by appointment.