CBRE’s Australian Healthcare & Social Infrastructure team have leased their fourth childcare centre of 2024, this time an existing vacant centre constructed in the late 90’s. Formerly leased to Goodstart, the 90-place centre is located at 156 Centenary Drive, Mill Park.
The property was vacated by Goodstart as an amalgamation of two existing services in the area to streamline staffing efficiency. Minor cosmetic refurbishments will be undertaken at the service inclusive of new paint / flooring and lighting. The long held family centre which was once owner occupied will be leased by Little Stars Early Learning and Kinder who feature 6+ services across metropolitan Melbourne.
The property was leased for a 10 year term with multiple options with the deal facilitated by CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat.
Sandro Peluso said “Now more than ever existing improvements continue to prove highly attractive to providers seeking immediate growth in operational scale. With a number of new builds not progressing or having been delayed due to instability in the construction market, speed to market is key for providers to build scale and maintain or increase profit margins in light of increased staffing costs. This is a trend we only expect to continue with developers also considering the conversion of existing assets more frequently.”
Marcello Caspani-Muto said “Providers really are operating with split strategies at present. It’s clear some are targeting growth corridors and single level operations while others remain confident in their ability to achieve strong occupancy and charge premium rates for metropolitan Melbourne locations at varying price points. This is an example of a high quality provider who gears their services to the more affordable sector of the market with more boutique and family lead operations.”
156 Centenary Drive, Mill Park features 19 car parks and adjoins the seventh day Adventist community hall which is typically only utilised on weekends. The centre featured 5 activity rooms plus ample staff amenity with the building well ahead of its time during its period of construction.
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