This article is from the Australian Property Journal archive
A LOCAL investor has snapped up a Greensborough childcare centre in Melbourne’s north east for $7.26 million on a yield of 5.95%.
Fitzroys agents Chris Kombi and Terence Yeh handled the sale of the St Helena Early Learning Centre, following an expressions of interest campaign in conjunction with Sandro Peluso and Jimmy Tat of CBRE.
Located at 189 St Helena Rd, the 4,224 sqm site comprises a 1,001 sqm purpose-built facility and is licensed for 120 places. Current return is $432,000 per annum plus GST on a new 15-year lease, with three further terms of five years and fixed 3% annual increases.
Kombi said childcare centre operators are beginning to feel the benefits of the Federal Government’s recently introduced $3.5 billion subsidy package, spurring confidence from investors looking for quality, well located assets.
“Amid reporting about a general oversupply of centres, demand from investors in some metropolitan areas remains strong, especially for new state-of-the-art centre such as this, which include large, valuable underlying land holdings,” Kombi said.
Yeh said the property is strategically located close to a number of primary schools within one and two kilometres, a factor typically associated with strong demand for childcare services.
“As is the case for most of Greensborough, 189 St Helena Road is bordered by multiple residential dwellings, providing that immediate demand for childcare and educational facilities. The area is further enhanced by major shopping centre, Greensborough Plaza, the Metropolitan Ring Road and also set to benefit from the North East Link project.” Yeh said.
Australian Property Journal
