A Childcare development site in Sydney’s northwest has sold for $5.061 million at auction, setting a new record sale rate per childcare place in Australia.
The 1,349sq m site at 25 Ray Road in Epping, which is approved for a 50-place child care centre, was purchased by Healing the World Pty Ltd – a local child care operator – at a rate of $101,220 per place.
The rate was 35% higher than the previous record set for a site at 6-8 Waterloo Street in Rozelle at the end of 2019, which was sold by Knight Frank.
The auction campaign for the Epping site was run by Demi Carigliano, Anthony Pirrottina and Grant Bulpett of Knight Frank on behalf of the vendor, a local investor.
It resulted in 47 bids from six registered bidders and saw the property sell for $861,000 over the reserve.
The property is currently occupied by a four-bedroom single storey residential dwelling, with 36 metres of street frontage, which has heritage significance and will be repurposed for the child care centre.
Mr Carigliano said purchasers had been attracted to the property due to its existing development approval, strategic location and the potential for expansion.
“The approved design is efficient, incorporating the existing dwelling into the plan, with no basement required due to on grade parking,” he said.
“While the site is currently approved for a 50-place child care centre, there is further potential for 60 places, subject to council approval, with the R4 zoning also permitting a range of uses including apartments.
“The property is also in the affluent and sought after northwest, benefitting from being in a nice tree- lined street within a strategic location in Epping town centre, being just 500 metres to the Epping Station and a short 20-minute drive to the Sydney CBD.”
Mr Pirrottina said it was rare for DA-approved childcare development sites to come to the market, but when they did they were very highly sought after.
“We are seeing growing confidence from investors in Sydney’s commercial property market as the state nears its re-opening, and quality investments like these are always hotly contested,” he said.
“Child care centres are a solid investment, with almost every child care asset that comes to the market setting a new record lately.
“These investments are attracting a high number of buyers and selling for strong rates due to the asset class being ‘COVID-proof’, with government rebates on childcare facilities.”
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