This article is from the Australian Property Journal archive
BRIDPORT Property Group has divested an inner Melbourne childcare centre for $8.25 million at auction.
Originally an office building, the facility at 64-66 Stubbs St was recently repurposed for use as a 92-place childcare centre. National childcare operator Kids Club currently occupies the premises on a 15-year rental agreement. With a net annual rent of $450,800, the sale reflects a 5.4% yield. On the corner of Scarborough Pl, the 1,461 sqm site was recently rezoned as mixed use under the Victorian government’s Arden Macaulay Precinct Structure Plan, which encourages the repurposing of industrial blocks near Stubbs St.
CBRE’s Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto negotiated the deal. The vendor paid $4.51 million for the property in 2017.
Twelftree said sale reflected a resurgence in the premium childcare asset market.
“Childcare is an essential and growing service, just like primary schools – as such, we have seen market sentiment swing from viewing childcare as an oversupplied asset class to something that is almost recession proof. This change in sentiment has resulted in an uptick in private investors looking to purchase childcare assets worth in excess of $5 million.”
Tat said childcare continue to be consider the asset class a safe investment for offshore investors, adding there is significant capital for standalone and portfolio childcare assets coming from Korea.
Further out from the city, Jarrod Moran and Stan Dawidowski of CVA have sold a childcare investment to a local developer and passive investor for $1.905 million, representing a 5.37% yield.
Currently leased to Hilltop Learning Pty Ltd, trading as Beacon Street Children’s Centre, on a long 10-year lease with 10-year options, the childcare centre has a 32 place permit for a net annual rent of $102,400.
Constructed in 2016, the purpose-built 210 sqm facility is on a 643 sqm land parcel within Vermont South’s Residential Growth Zone.
