Casey childcare sale one of Australia's biggest at more than $6 million

A Canberra childcare site has sold for more than $6 million at auction, making it one of the biggest child care sales in Australia.

The tenanted property in Casey, which houses Springbank Rise Early Learning, sold for $6.45 million under the hammer at a Burgess Rawson auction in Sydney on Tuesday, attracting a 5.39 per cent yield.

Burgess Rawson Canberra managing director Guy Randell said four registered bidders, including one Canberra party, tussled for the property before it was eventually snapped up by a Sydney buyer whose identity has not been disclosed.

He said it was one of the biggest childcare sales in Australia.

The 2314-square-metre property at 25 Andersch​ Street has a net income of $348,100 a year.

It comes with a 12-year lease to 2027, with three-to-five-year options available.

Mr Randell said Canberra had shaken off the label of Australia’s “poor cousin” and become more competitive on the national stage thanks to a growing number of quality assets and investments.

Property more broadly has become “the staple investment strategy”, he said, with the nation’s capital offering investors a secure market with solid returns.

Springbank Rise Early Learning was among two Canberra childcare centres auctioned on Tuesday.

A block of land in Rivett earmarked for a childcare centre, which comes with a commitment from a long-term operator, passed in but was sold for $1,450,000 soon after the auction.

The 1943-square-metre site is located on Rivett Place, opposite the suburb’s local shops.

The Casey sale comes as the ACT government eases restrictions on land earmarked for childcare to help stem an oversupply of centres in Canberra.

The decision follows a period of tightened restrictions on blocks being sold for childcare in order to boost the number of places available in the ACT.

However, high yields and population growth have driven interstate investment with the government selling a vacant childcare site in Higgins for a record $2,605,000 under the hammer in March. There were 145 registered bidders vying for the Belconnen region property.

Two sites in Curtin and Charnwood have been earmarked for childcare as part of the ACT government’s 2016-2017 land release program.

A Jerrabomberra service station was also auctioned on Tuesday, selling for $1.41 million under the hammer.

The Woolworth Caltex station at 10 Limestone Drive generates a net income of $66,970 a year.