$35.5 Million of Sales for Stonebridge’s Premier Victorian Childcare Portfolio

29 November 2024
203-205 Canterbury Road property


Stonebridge has announced the recent sale of a portfolio of three Victorian childcare centres totalling over $35 million, offered as part of their recent October National Portfolio.

Headlining the results is the sale of a brand new Heathmont facility at 203-205 Canterbury Road. After receiving 5 first round Expressions of Interest offers, the property sold for $12,016,668 on a 5.83% yield. The 139-place childcare centre is set across a 2,973 sqm* site and carries a lease to national operator, Grow Early Education, through to 2043 plus options.

Commenting on the sale, Stonebridge Asia Practice Partner Kevin Tong said, “The property was ultimately sold to an offshore Chinese investor who is a first-time childcare buyer. We continue to see an ongoing shift from Asian capital towards childcare assets, particularly those occupying large metropolitan landholdings. We have now seen four of the last six Victorian Stonebridge Childcare centres sell to Asian investors.”

In Doncaster, an Imagine Childcare sold for $15.5 million in one of the largest Victorian childcare transactions for 2024. The 158-place childcare centre is located on a high profile 1,968 sqm site with a lease in place to the Imagine until 2037 plus options. Given the larger price point, the asset drew interest from a different buyer profile than traditional childcare investors with the purchaser being a private family based out of NSW. The sale realised a yield of 6.05%.

Rounding out the portfolio, an established facility at 5-7 Clarendon Street, Avondale Heights leased to Nido Early School has transacted for $8,000,000 at 5.79%. The property was sold to a locally based private investor who was attracted the national covenant and strong suburban metropolitan Melbourne location.

Rorey James noted of the sales, “To transact a combined $35.52 million across the three properties highlights the increasing market confidence we are seeing as we head towards 2025. Investors continue to acknowledge the buoyancy of the childcare sector, bolstered by unwavering government support for the sector and appreciation for long term leased assets with strong fixed rental growth.”

These sales are the latest in a series of successful childcare transactions by Stonebridge Property Group. These include the recent off-market sales of an Early Explorers Learning in Frankston North and Nido Early School in Seaford on behalf of HealthCo, which sold for prices of $7.5 million and $6.5 million, respectively.

Stonebridge Agents, Rorey James and Kevin Tong negotiated the above sales.