A modern childcare centre once operated by G8 Education and later sold to Genius Early Learning has been re-leased in the Melbourne suburb of Keilor within 14 days.
The subject property which is only circa 3 years old fell into the hands of administrators after the collapse of Genius childcare however was seen to offer a substantial opportunity to incoming operators given the strength of the demand ratio in the suburb and quality of the improvements.
The centre which was permit approved for 126 children was leased by CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat within a matter of weeks from the previous service closing.
After a short but competitive process, 3 bids were received for the service from a mixture of local and national providers with the eventual tenant being Little Penguins with 5 operating services across NSW and VIC. The provider features a boutique focus on success of individual services and see’s a great opportunity for the property given it’s location, demand trends and immediate competition in the area.
The property was leased for a commencing rental of $529,200 or $4,200 per place on a fifteen year initial term with further options.
Marcello Caspani-Muto said “This was a confidential process that featured 3 inspections within just days of receiving access to the building. There was always great opportunity here given the quality of the building and it’s location. There are only a small number of competing service in the catchment and many feature substantially older buildings. Existing centres continue to catch the eye of operators who are highly competitive given the certainty of delivery and timeframes allowing them to better plan their business operations.”
Jimmy Tat added “ It’s no secret the supply pipeline of new centres has been declining rapidly, operators are very aware of this and will jump at the opportunity to acquire quality existing buildings if the design is still aligned with modern standards. In this instance Little Penguins are focusing on their expansion in Vic and saw this as a high quality and perfect initial launchpad for that.”
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