JLL has sold a Croydon development site with an approved child care centre for $2.8 million on a short 30-day settlement.
The deal was negotiated by Mark Stafford, Jesse Radisich and Mingxuan Li to a local child care developer at a cost per place of $22,950.
The property at 65-67 Beaufort Road comes with an approved permit for a state-of-the-art 122-place child care centre, designed by renowned Point Architects.
JLL Senior Executive, Capital Markets (Healthcare & Life Sciences) Mark Stafford said the campaign registered interest from 138 buyers and generated 6 offers.
“It is evident from this transaction that developers remain active in their pursuit of new opportunities and strong results are still being achieved within the child care market,” Stafford said. “The recent rises in both development and land costs have been somewhat offset by the continued growth of rental rates throughout the sector.
“Tenants and operators are setting new benchmark rental rates as the child care fees continue to rise, with Q4 2022 recording a 4.5% increase is fees nationally, the largest such increase in over ten years.” (source ABS CPI Dec Qtr report)
“This is allowing developers to navigate the difficulties within the project life cycle, and ensure new products are being delivered.”
“A key process in this sale was demonstrating that the property sat within an education precinct that comprises 22 schools within 3km of the site, providing a catchment of 12,000+ school students. This drew strong attention from operators, and even saw an offer to lease the project submitted at the end of the EOI process that would have been a record rate for the local area.”
“As the child care sector continues to evolve, with greater levels of sophistication and participants, developers and operators alike are increasingly selective in the locations they are targeting. The 2,918sqm site at Croydon provided a number of key fundamentals, that appealed to developers and operators alike,” Stafford added.
JLL is currently marketing a development site with approval for an 86-place child care centre at 121 Dorset Road, Boronia that is expected to sell for more than $1 million.
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