Inner-Melbourne childcare centre sale tops $10 million

Inner-Melbourne childcare centre sale tops $10 million
Inner-Melbourne childcare centre sale tops $10 million

A local private investor has sold a South Melbourne childcare centre for $10.25 million. 

The deal represents a sales rate of $85,415 per child, the only offering of this kind to have sold within 1.5 kilometres of the Melbourne CBD in the past five years. 

CBRE’s childcare specialists Sandro Peluso, Josh Twelftree and Jimmy Tat were the sales agents appointed to market the investment property at 97 Tope Street, which transacted on a tight yield of 4.2%.  

Featuring 360-degree views of the city skyline, the 1,700 square metre facility is currently leased to Guardian Early Learning and provides a passing income of $434,700 per annum. 

Peluso said 97 Tope Street was one of the most exciting childcare offerings to hit the market in recent years. 

“The site’s corner landholding and city fringe location, only 850 metres from Crown Casino and 1.5 kilometres from the CBD, offer a solid long-term investment and future development prospects,” Peluso said.  

“The property is currently zoned Commercial 2 and a scheduled review of its zoning will be taking place in 2028. Its blue-chip location and flexible lease inclusions made this opportunity suitable for a range of investor profiles.”  

Twelftree commented that Guardian is one of the country’s most sought after childcare covenants and a substantial amount of capital has been spent on the property’s fit out.” 

“As volumes of new childcare industry supply decrease, demand for premium offerings remain strong due to landlords’ confidence in tenant ability to achieve and maintain high levels of occupancy into the future.” 

Peluso noted the sector’s improved outlook has also been driven by a reduction in supply, due to tighter planning and borrowing criteria; increased government funding; and population growth in the 0-4 years age bracket.” 

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Inner-Melbourne childcare centre sale tops  million

Source: CBRE 

 

 

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Melbourne Childcare

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