A Cambodian-based investor has snapped up a near-new childcare centre in Ashwood, reflecting a growing trend of international capital investing in the sector.
Located at 465–467 Warrigal Road, the asset attracted four competitive offers, three from offshore capital and one local bidder. The sale price of the centre, reflects a yield below 5.4%, marking one of the sharpest transactions in Victoria’s sub $10 million childcare market.
The deal was brokered by CBRE’s Australian Healthcare & Social Infrastructure team, led by Jimmy Tat, Marcello Caspani-Muto and Sandro Peluso.
“The demand for this Ashwood asset was extraordinary and reflects the broader trends we’re seeing across the early learning sector,” Mr Tat said.
“Investors recognise childcare is an important service which plays a vital role in our Australian economy, supporting working parents and providing engaging and structured learning environments for young children. With 65% of offers coming from offshore buyers, it’s clear that Australian childcare centres are viewed globally as secure, income-producing assets backed by robust government support,” Mr Tat added.
The 1,976 sqm building is situated on a prominent corner site and is secured with a lease to Ashburton Early Learning with a 15-year initial term and options to 2060. The centre is licensed for 104 long daycare places and delivers a passing income of $442,000+GST with fixed 3.5% annual increases.
Mr Caspani-Muto noted CBRE continues to transact high-quality childcare centres nationally at yields under 5.5%.
This current sale follows recent transactions from CBRE’s Australian Healthcare & Social Infrastructure team including a childcare centre at 491 Highett Road, Highett for $12.5 million with a yield of 4.99%.
“It’s a testament to investor confidence, long-term leases and strong government policy make childcare one of the most defensive asset classes available. In particular, Victoria is attracting repeat interest from international investors, offering stronger yields than Sydney or Brisbane, typically 100–150bps higher,” Mr Caspani-Muto said.
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