A rare portfolio of Childcare and Swim School assets in Melbourne are set to hit the market in the coming weeks, with agency Stonebridge exclusively handling the appointment.
The portfolio includes 2 Early Learning Centres leased to ‘The Y’, formerly known as YMCA; and a ‘Kingswim’ swim school, located in the major growth corridors of Clyde North and Tarneit.
It will be offered for sale via International Expression of Interest campaign, with the opportunity to acquire the assets individually or together as a portfolio. The campaign is scheduled to close in October.
Stonebridge’s Rorey James, who is handling the campaign with colleagues Kevin Tong and Justin Dowers, said “this is a portfolio that is safe, secure and essential, backed by a major covenant and strategically located in some of our fasted growing residential corridors in Victoria. It is a terrific opportunity that warrants strong investigations from private investors, syndicates and funds.”
“With 15-year net leases in place across all 3 assets coupled with fixed annual rental increases up to 3% and major depreciation tax benefits, the portfolio offers a very favourable cash flow over a long period of time, which will be complemented by the growth in each respective location.”, according to Stonebridge Partner Justin Dowers.
With occupancy rates of close to 100% at Clyde North and nearing 80% at Tarneit, the Early Learning Centres have attracted very strong engagement in a short period of time, with these rates expected to continue to rise with the major population growth forecasted in the coming years.
“These assets are the perfect investment opportunity for investors looking for a steady income stream. Being newly built means there is minimal capital expenditure requirements in the future coupled with long leases to national tenants, ensures that you’ll get a steady return over the next 15 years. When you add the current low interest rate environment and the returns you are getting on alternative investments, we anticipate strong demand from the domestic and international buyer pool who have also been very active in the childcare market over the last 5 years.”, Kevin Tong, Director of Stonebridge’s Asia Practice.