Unique package: The Taylor Child Care Centre and adjoining land, with approved development application. Photos: Colliers.
A Gungahlin property has hit the market that not only offers the buyer a sustainable long-term income but a ready-to-go development opportunity.
The property in the growing suburb of Taylor includes the 110-place Taylor Child Care Centre, which comes with a long lease and an adjoining piece of land with an approved development application for a 32-unit residential project.
Colliers is marketing the site.
Head of Capital Markets & Investment Services ACT, Matthew Winter said 74-76 Corkery Street was an outstanding investment and development opportunity in one of Australia’s fastest growing regions.
Mr Winter said the childcare centre’s 20-year lease did not expire until 2043 and there was an option to extend to 2063.
“This investment is being offered under a net lease structure, which means the tenant is responsible for all outgoings and annual rent increases are built into the contract,” he said.
Mr Winter said that as well as this steady income, a 2268 sqm piece of land next door had been approved for three multistorey residential buildings with shared basement parking and facilities.
An artist’s impression of the 32-apartment development approved for the vacant land.
The DA says that of the 32 apartments, six are single bedroom, 25 are single bedroom plus a study and one is a two-storey, three-bedroom unit.
Six will be affordable units, four of which will also be adaptable.
The DA was approved in January 2023 and the buyer has until January 2026 to start construction, unless an extension is sought.
The proponent, Horse Park Enterprises Pty Ltd, went into receivership in February this year.
Colliers Executive Metropolitan Markets Ollie White said it was a unique offering but could not reveal what the package might bring in the current Canberra market.
“A lot of people, particularly those viewing it for the childcare component will base it on a yield approach, and there’s been a few strong sales in the ACT recently, and they’re a quite tightly held asset class, which is positive,” he said.
The Taylor Child Care Centre offers a long lease and secure income stream.
Mr White said that while selling the two portions together might limit the buyer pool they could not be separated.
He expected interest from investors who would find the secure income of the childcare centre attractive, and developers for the land.
“It’ll be attractive to investors looking at the childcare asset on its own,” Mr White said. “I think you’ve also got developers who will look at it, with the potential of the holding income from the childcare centre while you develop the residential piece there.”
There had already been strong local interest, as well as from interstate.
Mr White said demand for childcare places would be expected to remain strong and additional residential choice would be welcomed in the fast-growing area.
“The great thing is it’s next to Jacka, so you’ve got a lot of development going on there, which you would hope means a potential strong pipeline of increased population in the area,” he said.
Mr White said the approved DA offered buyers certainty and clarity when it came to assessing the site’s potential.
“The site has prominent frontage to Horse Park Drive and is less than 30 km from the city centre, and only 6 km from the Gungahlin Town Centre,” he said.
The site is being offered for sale on an ‘as is’ basis via expressions of interest on 10 July.
