Growing demand for childcare seen in Melbourne

Two Melbourne childcare centres, one recently developed and one currently under development, have been leased as the asset class continues to evolve with the government’s support.

Singapore-based childcare operator, Kinderland Early Learning, which has a portfolio of childcare centres across Southeast Asia, has leased a recently developed centre within Box Hill’s Sky Square Tower. The centre is licensed for 170 places and will be the company’s Australian flagship centre. Kinderland Early Learning signed a 15-year term with an annual rental of $545,700 reflecting $5,100 per child.

Victorian based operator, Happy Sprouts Learning has added to its portfolio of Melbourne childcare centres with the lease of 1325 Plenty Road, Mernda, the old Mernda Primary. The site is being developed by V.A.G project management and has a permit for 127 places. Happy Sprouts Learning has signed a 15-year lease with an annual rental of $531,200.

CBRE’s Australian Healthcare and Social Infrastructure team of Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto negotiated the two leases on behalf of the property owners.

“With the government’s support for the childcare sector increasing and the demand of early education growing, international operators are viewing Australia as an opportunity to introduce their unique curriculum to the country,” Mr. Tat said.

Mr. Peluso added, “The early learning leasing market is strengthening as consistently reducing supply continues to drive demand across the country. Providers are not discriminating between CBD and regional locations; these two centres prove that.”