Ringwood childcare centre subject of bidding war

A 125-place child care centre in Ringwood, 25km east of Melbourne, was the subject of a ferocious bidding war at a busy commercial property auction at Crown Casino last week.

Bidding began at $2.5 million and, 30 bids later, reached $3.145 million on a yield on 6.7%.

The 290 Maroondah Highway centre, on 2,649 square metres, was built in 2006. It is run by an ‘’established and successful’’ operator, according to Burgess Rawson auctioneer David Scholes.

The 918 square metre purpose-built centre, enjoying a 95% occupancy rate, comes with a new 20-year lease with two 10-year options.

Scholes said the government was spending $575 million on refurbishing the nearby shopping centre, and that the centre was ‘’in the perfect position to enjoy expected growth in the area.’’

The child care centre was one of 15 properties auctioned by the commercial estate agent in the casino’s River Room.