Sydney-based Mike Wu and Shan Kuo, husband-and-wife developers and childcare centre operators, are set to divest a portfolio of owner-occupied venues worth more than $150 million.
The founders of Little Lane Learning and Avenues Early Learning Centre are selling seven assets across Sydney, Melbourne and Brisbane, including the duo’s newest operational building.
Situated in Melbourne’s blue-ribbon suburb of Hawthorn, the 555 Glenferrie Road, building is being offered on a WALE of 15 years and an income of $1.2 million per annum, with the tenant covering outgoings and GST.
Another key asset at 239 Pittwater Road in Manly is currently under construction and will be complete in November this year, it offers incoming owners the same annual income on a lease term of 15 years.
Of the four assets for sale in Queensland, the Bowe Hills property, which was once a major office building before a substantial refurbishment in 2012, at 45 Folkestone Road is 3km from the Brisbane CBD and is being offered with the highest annual income – $1.7 million, with the tenant covering outgoings and GST.
Featuring a total passing income of $7,400,000 per annum, all properties are being offered individually or in one-line, each with a 15-year lease.
CBRE’s Sandro Peluso, Josh Twelftree, Jimmy Tat, Marcello Caspani-Muto, Aaron Arias, Toby Silk and Darren Collins have been appointed to market the portfolio.
Mr Peluso said the portfolio was expected to attract interest from a variety of buyer types, including syndicates and high-net worth individuals, as well as institutions that have traditionally focused on office or retail investments – given demographic and lifestyle shifts, demand and a lack of supply.
“Due to the money market’s current returns and the scarcity of high-quality investment stock, we are expecting some funds which have not typically played within the educational sector to register interest in the portfolio,” Mr Peluso said.
“The premium nature of these centres, their demonstrated high levels of occupancy (96.5% across all centres) and proven track record, make these some of the best quality assets on the national investment market.”
Mr Tat added; “Our early discussions with international investors have indicated a clear appetite for a portfolio of this magnitude, as it represents a stable, long-term investment at a level that will deliver immediate scale.”
“The quality of these centres is amongst the best nationally – featuring design elements and ideas from some of the world’s best childcare architects,” Mr Tat said.
The divestment follows Mr Wu and Ms Kuo’s sale of a portfolio of nine childcare investments for $63.2 million to Folkestone Education Trust, which has since been acquired by Charter Hall Education Trust.
Mr Wu of Little Lane Learning and Avenues Early Learning Centre said his company strategy was to acquire strategic sites where the demand for childcare supply outstripped supply.
The pair currently run and operate 17 centres across Australia, with another two centres opening by end of the year – bringing their total number of centres to 23, including the ones in the pipeline.
Last month, Mr Wu and Ms Kuo spent $20 million on a Melbourne office at 90-96 Tram Road, Box Hill, with the site’s slated development to include a childcare centre in the commercial building.
Last year, the pair also acquired the heritage listed Drummoyne Reservoir in Sydney’s inner-west from Sydney Water with the intention to fit it out as a multi-level childcare centre.
In 2017, Mr Wu and Ms Kuo paid $60 million for a South Melbourne development site, which had been approved for four apartment buildings containing over 1000 dwellings, with construction beginning at the end of this year to develop a Little Lane Learning complex licensed for 348 children (the biggest centre in Australia), creating an end value of over $100 million.
The new 4500sqm, four-storey Little Lane centre in South Melbourne, which was jointly designed by world renowned Japanese-based Tezuka Architects and Milton Architecture, will feature a swimming pool, rock climbing facilities and a vertical terrace adventure playground.
Mr Wu said it will complement inner city living by providing its children double the amount of outdoor space, as required by regulations.
THE PROPERTIES
New South Wales:
1. 239 Pittwater Road, Manly
The tenant pays $1.2 million per annum, plus outgoings and GST.
Victoria:
2. 757 Station Street, Box Hill
Tenant pays $1.2 million per annum, plus outgoings and GST.
3. 555 Glenferrie Road, Hawthorn
The former Hawthorn Receptions site.
The tenant pays $1.2 million per annum, plus outgoings and GST.
Queensland:
4. 45 Folkestone Road, Bowen Hills
Tenant pays: $1.7 million per annum, plus outgoings and GST.
5. 624-630 Old Cleveland Road, Camp Hill
A former church, this property was acquired from the Uniting Church in 2013.
Tenant pays: $1.1 million per annum.
6. 24 Southgate Avenue, Cannon Hill
Tenant pays: $500,000 per annum, plus outgoings and GST.
7. 488 Jacksons Road, Sunnybank Hills
Tenant pays: $500,000 per annum, plus outgoings and GST.
The founders of Little Lane Learning and Avenues Early Learning Centre are selling seven assets across Sydney, Melbourne and Brisbane, including the duo’s newest operational building.
Situated in Melbourne’s blue-ribbon suburb of Hawthorn, the 555 Glenferrie Road, building is being offered on a WALE of 15 years and an income of $1.2 million per annum, with the tenant covering outgoings and GST.
Another key asset at 239 Pittwater Road in Manly is currently under construction and will be complete in November this year, it offers incoming owners the same annual income on a lease term of 15 years.
Of the four assets for sale in Queensland, the Bowe Hills property, which was once a major office building before a substantial refurbishment in 2012, at 45 Folkestone Road is 3km from the Brisbane CBD and is being offered with the highest annual income – $1.7 million, with the tenant covering outgoings and GST.
Featuring a total passing income of $7,400,000 per annum, all properties are being offered individually or in one-line, each with a 15-year lease.
CBRE’s Sandro Peluso, Josh Twelftree, Jimmy Tat, Marcello Caspani-Muto, Aaron Arias, Toby Silk and Darren Collins have been appointed to market the portfolio.
Mr Peluso said the portfolio was expected to attract interest from a variety of buyer types, including syndicates and high-net worth individuals, as well as institutions that have traditionally focused on office or retail investments – given demographic and lifestyle shifts, demand and a lack of supply.
“Due to the money market’s current returns and the scarcity of high-quality investment stock, we are expecting some funds which have not typically played within the educational sector to register interest in the portfolio,” Mr Peluso said.
“The premium nature of these centres, their demonstrated high levels of occupancy (96.5% across all centres) and proven track record, make these some of the best quality assets on the national investment market.”
Mr Tat added; “Our early discussions with international investors have indicated a clear appetite for a portfolio of this magnitude, as it represents a stable, long-term investment at a level that will deliver immediate scale.”
“The quality of these centres is amongst the best nationally – featuring design elements and ideas from some of the world’s best childcare architects,” Mr Tat said.
The divestment follows Mr Wu and Ms Kuo’s sale of a portfolio of nine childcare investments for $63.2 million to Folkestone Education Trust, which has since been acquired by Charter Hall Education Trust.
Mr Wu of Little Lane Learning and Avenues Early Learning Centre said his company strategy was to acquire strategic sites where the demand for childcare supply outstripped supply.
The pair currently run and operate 17 centres across Australia, with another two centres opening by end of the year – bringing their total number of centres to 23, including the ones in the pipeline.
Last month, Mr Wu and Ms Kuo spent $20 million on a Melbourne office at 90-96 Tram Road, Box Hill, with the site’s slated development to include a childcare centre in the commercial building.
Last year, the pair also acquired the heritage listed Drummoyne Reservoir in Sydney’s inner-west from Sydney Water with the intention to fit it out as a multi-level childcare centre.
In 2017, Mr Wu and Ms Kuo paid $60 million for a South Melbourne development site, which had been approved for four apartment buildings containing over 1000 dwellings, with construction beginning at the end of this year to develop a Little Lane Learning complex licensed for 348 children (the biggest centre in Australia), creating an end value of over $100 million.
The new 4500sqm, four-storey Little Lane centre in South Melbourne, which was jointly designed by world renowned Japanese-based Tezuka Architects and Milton Architecture, will feature a swimming pool, rock climbing facilities and a vertical terrace adventure playground.
Mr Wu said it will complement inner city living by providing its children double the amount of outdoor space, as required by regulations.
THE PROPERTIES
New South Wales:
1. 239 Pittwater Road, Manly
The tenant pays $1.2 million per annum, plus outgoings and GST.
Victoria:
2. 757 Station Street, Box Hill
Tenant pays $1.2 million per annum, plus outgoings and GST.
3. 555 Glenferrie Road, Hawthorn
The former Hawthorn Receptions site.
The tenant pays $1.2 million per annum, plus outgoings and GST.
Queensland:
4. 45 Folkestone Road, Bowen Hills
Tenant pays: $1.7 million per annum, plus outgoings and GST.
5. 624-630 Old Cleveland Road, Camp Hill
A former church, this property was acquired from the Uniting Church in 2013.
Tenant pays: $1.1 million per annum.
6. 24 Southgate Avenue, Cannon Hill
Tenant pays: $500,000 per annum, plus outgoings and GST.
7. 488 Jacksons Road, Sunnybank Hills
Tenant pays: $500,000 per annum, plus outgoings and GST.
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About CBRE Group, Inc.
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.
About CBRE Group, Inc.
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.
