2020's largest public childcare facility sale in Australia

2020's largest public childcare facility sale in Australia
2020's largest public childcare facility sale in Australia

The Agosta family has divested its Footscray Nino Early Learning Adventures Centre for $11.5 million, a move representing Australia’s first childcare centre sale to top $10 million this year. 

Located at 282-288 Geelong Road, the multi-level state of the art facility is the newest centre under the Nino Early Learning Adventures brand, having been completed in the past month. The property comprises a building area of 2,228 sqm and includes basement car parking for 25 vehicles.

CBRE’s Australian Healthcare & Social Infrastructure team negotiated the sale on behalf the Agosta family via an Expressions of Interest campaign. 

The Geelong Road property is the eleventh Nino Early Learning Adventures centre sold by CBRE over the past three years, with these sales amassing a total transactional value of more than $150 million.  

CBRE’s Josh Twelftree said the sale was the second major childcare investment transacted in 2020 across Australia, with the first having been transacted by the team only two weeks ago in OAKLEIGH EAST, Victoria, for $8.08 million with a 5.4 per cent yield. 

“These results are the catalyst for buyers flocking to the sector during these uncertain times, with childcare – an essential service investment – continuing to transact,” Mr Twelftree said.

“Investors have been focusing, and will continue to focus, on properties with sound fundamentals, with the market experiencing a flight to quality where well-located assets with reliable income streams and long leases are keenly sought.”

“Childcare investments with strong underlying land value are on the top of the investors wish list, with higher cost of entry into these areas offering confidence competitors are less likely to open a centre in close vicinity,” 

CBRE’s Jimmy Tat said growing investor interest in childcare centres was being driven by their relative stability as an asset class. 

“When the commercial market was at its weakest earlier this year, investors shifted their focus to stable investment opportunities – such as childcare centres – that were providing essential services and the Federal Government’s support of childcare services further reinforced this,” Mr Tat said.

“Investors typically rate tenancy profile as the top priority after location – primarily to ensure the investment provides a strong income guarantee.

“Nino Early Learning Adventures is a well-known reputable operator with a foothold in sought after investment locations. This is underpinning greater demand and interest in their assets – as evidenced by recent transaction activity.”

 CBRE is the premium childcare sales specialists, having handled all but one of the nine sales over $8,000,000 across Australia in the past 24 months (89 per cent market share). 

Recent Nino Child Care Sales Results - CBRE

Address

Sale Price

Rental p.a

Buyer Nat.

Yield

103-107 Koonung Rd, Blackburn North

$9,280,000

$498,000

International

5.36%

356-358 Warrigal Rd, Ashburton

$10,600,000

$603,000

International

5.68%

11-15 Chadstone Rd, Malvern East

$16,900,000

$711,000

International

4.20%

31 Nepean Hwy, Elsternwick

$11,300,000

$675,000

International

5.97%

282-288 Geelong Rd, Footscray

$11,500,000

$675,000

Domestic

5.80%

60 Florey Ave, Point Cook

$10,000,000

$511,000

Domestic

5.11%

519 Melbourne Rd, Newport

$8,100,000

$520,000

International

6.40%

1-7 Reserve Road, Melton

$7,000,000

$392,000

Domestic

5.59%

459 Brookfield Blvd, Mickleham

$6,350,000

$420,000

Domestic

6.60%

222 Plenty Rd, BUNDOORA

$8,900,000

$582,000

International

6.50%

365 Bell Street, Preston

$11,000,000

$488,000

Domestic

4.40%

International 

Domestic

6 groups

5 groups

55%

45%

Avg Yield

Avg Yield

5.68%

5.50%

Tags: 
CBRE Childcare

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