PROPERTY DESCRIPTION
AN OPPORTUNITY NOW PRESENTS ITSELF HERE TO OWN FREEHOLD A PIECE OF PRIME COMMERCIAL REAL ESTATE JUST 2 KMS TO THE BUNDABERG C.B.D PROVIDING A SAFE AND SECURE RETURN OF 7.5%, ADDITIONALLY WITH CAPITAL GAIN POTENTIAL ON TOP OF THAT.
On offer is a freehold commercial property operating a Kindergarten and Pre-Prep for children from 15 months to 5 years of age. Established in October 2009 the business has been operating very successfully as “CUDDLE BUGS Kindergarten and Pre-Prep” by the business owners Andrea and Nicole. Andrea and Nicole plan to continuing to operate the business as they have been doing so for many more years to come. While the business is not for sale, the freehold land and building is.
A long term and secure lease will form part of the purchase. The business owners as tenants will be on a long-term lease paying $120,000 / year plus all day-to-day outgoings, council rates, insurance premiums, maintenance, and expenses.
Rent for a business of this nature is based on the approved places the facility has in place. The Kindergarten is approved for 60 places. $120,000/ year plus outgoings is recognized as the middle of the range rent that is paid for a Kindergarten or childcare facility with approval for 60 children at any one time.
If for whatever reason Andrea and Nicole chose to sell the business in the future, the lease that is in place will form part of the business sale protecting both the buyers for the business and you as the landlord. Paying the mid-range rent of $120,000 per year plus outgoings is viable based on the income the business delivers.
Additionally, the Federal Government has announced its plans to get women working by subsidising the cost of Child Care Heavily of which this business falls into. The Childcare industry will only get busier with this.
The approval process to open a Kindergarten, Pre-Prep or Child Care Centre is something that requires a lot of hoops to jump through, it is an extensive process with no guarantees of approval. Councils also will also only approve a certain number of Childcare Centers and Kindergartens in any one area.
Cuddle Bugs is well established and has built up its numbers over the last 11 years of operation. The Bundaberg Region has a population of close to 100,000 people. The Kindergarten is located just 2 Kms to the Bundaberg C.B.D and is open from 6am to 6pm 5 days a week. Parents travel from all over the Region into the Bundaberg C.B.D for work and can leave their Children at Cuddle Bugs while they work.
Banks have an extraordinarily strong appetite for lending money to people to buy real estate in the Bundaberg Region due to the remarkably diverse economy of the Bundaberg Region.
Its all done, its all approved, its all-in place, it is all operational with a proven track record here. You do not need to worry about the operation of the Kindergarten, that is up to the tenants. Just buy the property and allow the business owners to continue to operate the business as they have done so for over 11 years which will provide you a safe return on your money of 7.5% today. In time you can sell it for more than you have paid for it.
Call Tim McCollum today on 0427 523 088 to secure this Blue-Chip investment.
AT A GLANCE:
Total land size- 1,934m2 (Note around 1,160m2 usable as a stormwater easement occupies approximately 40% of the land)
Zoning- Commercial.
Present use- Kindergarten & Pre-Prep.
Tenant in place- Yes- Long term lease paying $120,000 per year plus outgoings.
Agent: Tim McCollum
Phone: 0427 523 088
The information provided is for use as an estimate only and potential purchasers should make their own enquires to satisfy themselves of any matters.