A South Melbourne child care centre is up for sale - representing the only childcare investment opportunity within three kilometres of the Melbourne CBD to hit the market in the past five years.
CBRE’s child care specialists Sandro Peluso, Josh Twelftree and Jimmy Tat have been exclusively appointed to market the investment property at 97 Tope Street, which is expected to gain interest in excess of $9.5 million.
Offering 360-degree views of the Melbourne CBD, the 1,700 sqm facility is leased to Guardian Early Learning and provides a passing income of $434,700 per annum. The covenant is additionally underpinned by flexible leasing terms, which is set to encourage interest from a range of investors.
Mr Peluso said 97 Tope Street was one of the most exciting child care offerings to hit the market in recent years and has come off the back of positive press for the child care industry, with the largest listed provider, G8 education, recording substantial growth in its share price.
“The properties blue-chip location and flexible lease inclusions make this opportunity suitable for a range of investor profiles. With the site being only 850m from Crown Casino and 1.5km from the CBD, the long-term investment potential is significant.”
Mr Twelftree added: ”Guardian is one of the country’s most sought after child care covenants and a substantial amount of capital has been spent on its fit out. These factors, coupled with decreased volumes of supply within the child care industry, should give investors significant confidence in the long term lease serviceability for the asset.”
“The property’s corner landholding and city fringe location also allows for limitless future potential. It’s currently zoned Commercial 2 and a scheduled review of its zoning should further increase investor appeal,” Mr Twelftree concluded.
The sector’s improved outlook has been largely driven by a reduction in supply due to tightening planning and borrowing criteria, increased government funding, and the recorded population growth in the 0-4 years age bracket.
97 Tope Street, South Melbourne is being offered to the market by way of expressions of interest closing on Wednesday, April 3 2019.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.