Brand New Childcare Investment in High Growth Area hits market

29 December 2021

A brand new childcare investment located at 4 Brightfield Street, Wyndham Vale is the first early learning investment to be offered in 2022. With continued yield compression witnessed across the childcare sector at the conclusion of 2021 the offering is expected to be highly sought after by investments and syndicates alike.

Tenanted by boutique local operator Funtastic Kidz the centre which has already seen substantial enrolment numbers within 2 months of operation is being offered to the market by CBRE’s Australian Healthcare & Social Infrastructure team of Marcello Caspani Muto, Sandro Peluso and Jimmy Tat and will be sold via Auction in late February.

With construction on complete in November of 2021 the property features passing income of $371,700p.a with fixed 4% annual increases.

Marcello Caspani-Muto said “Early learning investments have continued to go from strength to strength over the past 2 years with a particularly strong run home in the last 6 months of 2021. We have seen consistent yield compression for quality investments within the space which are now at record lows, and our team the believe there is even further compression to occur.”

“Understanding the fundamentals of not just the improvements but also the demographic selection of these centres is key. While there has been a steady increase of childcare places in Wyndham Vale if you speak to any operating providers they are at 100% capacity with substantial waitlists above this, all boding incredibly well for long-term security and serviceability of rental obligations from a tenant perspective.”

Sandro Peluso said “With a number of investors now seeking future income/ return protection against potential future interest rate increases we are expecting this centre to be very well received by investors given it’s fixed 4% increases which are well above the industry average of 3%. Couple this with the significant depreciation benefits associated with the brand new nature of the building and this really does tick all the boxes from an investment perspective.

4 Brightfield Street features a 15 Year lease plus further options to 2056 and sits upon a 2,700sqm landholding zoned Urban Growth.

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