A brand-new childcare centre leased to Imagine Childcare has sold for $10,100,000 reflecting a yield of 4.2% in a hotly contested auction held in CBRE’s Melbourne boardroom.
The subject property is positioned on the corner of Capra Court and Hallam North Road and sits upon an elevated 4,031sqm site within the Regal Rise Estate in Melbourne’s south-east growth corridor and has a combined 140m frontage.
It features a triple net lease to Imagine Childcare, a national operator with more than 20 locations, with an annual rental of $433,217 and is permit-approved to accommodate 130 children.
CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto handled the sales campaign which saw more than 30 people enter the company’s boardroom for the standalone auction.
Sandro Peluso said “Childcare investment over the past five years has experienced exponential growth with matched investor appetite. Despite the success of this sector, there are still a handful of industry influencers who continue to refer to it as an “alternative investment”. This is far from the case, and I think it is clearer now than ever, that childcare centres and broader social infrastructure assets are now considered a core investment class.”
“Our competitive bidders included a number of traditional commercial property owners who are looking to grow a more diversified portfolio as well as some who had recently sold assets with the view of entering the social infrastructure market for the long-term.”
Jimmy Tat added “The auction was as strong as we have seen over the past 24 months within the early learning sector. We had five bidders competing for the property with several other registered groups in attendance who missed out due a number of bullish investors who bid aggressively.”
The sale follows CBRE’s recent successful early learning transaction of 4 Brightfield Street, Wyndham Vale just four weeks ago. The agency team has already scheduled its next boardroom Auction for the brand-new childcare centre at 6 Huon Park Road, Cranbourne to be sold on May 18.