Melbourne City Mission Sells Brunswick Childcare Centre

A private investor has acquired a long-standing Brunswick childcare centre owned by Melbourne City Mission (MCM) for $7.9 million.

CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat managed the sale of the property at 123 Albion Street, prior to the formal Expressions of Interest close date.

The sale price of the recently renovated property, situated on more than 3,500sqm of land, reflected a 5.5% yield.

The property has a 15+10+10 year lease to Frolic Early Learning with fixed annual increases of 3.5%. It generates an annual income of $441,000 and is operational for 126 places.

Mr Peluso noted the location of the property was of initial interest, the heritage overlay did limit the long-term alternative use potential in the eyes of many potential buyers.

“That being said, the character of the building and substantial building renovations completed by the tenant prior to the listing demonstrated their long-term commitment to the site. The buyers understood the demand for childcare services in this area and the likely long-term success of the tenant,” he added.

Mr Peluso and his team also managed the sale of the business at the same premises six months ago when MCM ceased childcare operations. The team also established the lease with Frolic Early Learning who are new entrants to the sector and have two existing centres in Victoria.

Mr Caspani-Muto said, “With many Victorian childcare centres being traded at yields of 6% or softer, this is a great result. The consistent approach of our team is driving highly successful yield outcomes for clients.” 

The CBRE team have sold four childcare centres in 2025 with a further two under offer, making it one of the most active quarters in the team’s history.