A long-standing childcare centre, situated on one of the largest corner landholdings in Brunswick, has hit the market following a substantial renovation.
CBRE’s Australian Healthcare and Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat are managing the sale of 123 Albion Street on behalf of owners Melbourne City Mission.
The property has a 15+10+10 year lease to Frolic Early Learning with fixed annual increases of 3.5%. It generates an annual income of $516,000 and is operational for 126 places.
Mr Caspani-Muto said, “The tenant retention story here is strong with the operator having recently completed a significant renovation and injecting a substantial level of capital to ensure the centre’s continued long-term success.
“The business is a mainstay in the local community and remains one of the most affordable offerings in the catchment. Adding to the asset’s appeal is a significant underlying landholding which arguably holds a land value above and beyond its current potential purchase price on a yield basis,” Mr Caspani-Muto added.
Situated on more than 3,500sqm of land, the centre has undergone an extensive six-month renovation so it can continue its long-standing service to the community.
Mr Peluso said, “Given the rarity of a corner landholding of this size within Brunswick we expect this to be sought after not just by traditional passive childcare investors but longer-term land bankers and potentially value-add investors. For a landbank in an area like Brunswick a potential positively geared return is unheard of and despite the 15-year initial term we expect many groups will look beyond this, taking an even longer-term view.”
The Expressions of Interest campaign closes in late March 2025.
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