South Melbourne childcare centre sells for $10 million
11 April 2019, Written by Business News Australia
A childcare centre in South Melbourne leased to Guardian Early Leaning has sold for $10.25 million.
According to CBRE the sale of the centre marks the first of its kind to be sold within 1.5km of the Melbourne CBD in the last five years.
Featuring 360-degree views of the city skyline the centre on Tope Street provides a passing income of $434,700 per annum.
CBRE's childcare specialist Sandro Peluso said the centre 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 850m from Crown Casino and 1.5km from the CBD, offer a solid long-term investment and future development prospects," says Peluso.
"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."
CBRE's Josh Twelftree says the current tenant was a major differentiating factor for the property.
"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," says Twelftree.
"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 says childcare continues to be a strong performer in the property world thanks to market trends.
The sale comes off the back of positive press for the childcare industry as Australia's largest listed providers continue to see strong share price growth," says Peluso.
"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."
Business News Australia
Author: Business News Australia