New Narre Warren childcare centre going under the hammer

A brand-new childcare centre opening its doors next week with Imagine Childcare is hitting the market, amid rising interest in early learning investments.

On the corner of Capra Court and Hallam North Road, the elevated, 4,031sqm site is located within the Regal Rise Estate in Melbourne’s south-east growth corridor and has a combined 150m frontage.

It is fully leased to Imagine Childcare, a national operator with more than 20 sites, for 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 are managing the sale campaign, with an auction to be held at CBRE’s Melbourne office on Tuesday April 12.

Its listing follows CBRE’s sale of the Funtastic Kid-occupied childcare centre in Wyndham Vale for $6.85m, which was the first investment activity in the sector for 2022.

“This premium investment opportunity being brought to market emphasises the confidence and strength of the childcare market,” Mr Peluso said.

“Construction costs are increasing monthly and there is strong demand for purpose-built childcare facilities with blue-chip tenants. We expect this trajectory to continue well into 2022.

“This property is set to attract significant interest given its high-growth location and Imagine Childcare’s standing as a high-quality tenant.”

Across its portfolio, Imagine Childcare operated at well over 90% capacity through 2021, and has an average waiting list in excess of two years.

The Capra Court site is near numerous primary and high schools, and a host of recreational facilities, between the M1 and Heatherton Road.

“We are receiving a high level of interest at circa 4.5%, which is a real indicator of where market expectations sit,” Mr Tatt added.

“We expect the property to be extremely popular with potential investors and those wanting to expand their childcare investment portfolio.”