2016 has been a busy year for the Childcare sector with very high demand from buyers of childcare businesses and freehold properties throughout New Zealand. This is leaving many buyers empty handed.
The Childcare sector is highly desirable for a broad range of investors which has driven demand in all regions. With most sales completed with a multiple offer scenario, sellers have the luxury of controlling who they sell to and what terms and conditions they are prepared to accept.
With the supply in the Auckland region becoming limited the demand for centres in provincial areas such as Waikato, Bay of Plenty, Manawatu, Wellington and has increased significantly this year.
The buyers range from Corporate investors ideally seeking purpose built centres with 50 plus licensed places through to owner operators who will consider any sized centre depending on their personal budget and circumstances. The demand has resulted in some record pricing paid for centres, particularly where a multiple offer is in play.
Property sales have also been strong with Passive investors seeking higher returns than the bank can provide. With low interest rates driving investors to seek better returns sellers have been delighted with the pricing that has been negotiated on their behalf.
It is anticipated that the demand for Childcare Businesses and Property will continue to be as strong, if not stronger in 2017.
We will need more businesses and property to meet the buyer demand in 2017.
If you wish to take advantage of the current market please contact us in the New Year for a confidential no obligation chat.
We wish you and your family a peaceful and relaxed Christmas break and look forward to a busy 2017!