Oakleigh childcare investment sells for $8m prior to hitting the market
Oakleigh childcare investment sells for $8m+ prior to hitting the market
| 22 June 2020
A premium childcare property in Melbourne’s Oakleigh East – tenanted by the country’s largest early learning operator, Guardian Early Learning – has sold off market.
Completed in 2012, the General Residential zoned property at 82 Ferntree Gully Road, which has capacity for 106 children and 20 on-site parking spaces, transacted on a 5.4% yield and accrues an annual rental of $440,072.
Sold to a Chinese investor, the 1,415sqm site’s transaction took just nine business days and contracts were signed prior to the formal commencement of the Expressions of Interest campaign.
Mr Tat said; “This sale is another demonstration of the strength and stability of the healthcare and social infrastructure sector – even with COVID-19, there is still capital in the market and interest from Asian investors remains strong.
“With multiple parties competing during the Forthcoming Sale period, the sale demonstrated the sought-after nature of early learning investments.”
Mr Peluso commented that; “The price our team achieved was actually stronger than pre-COVID sales results. In fact, our recent sales results across all health and social infrastructure assets are proof that investors value the stability of this sector.”
This is the third premium offering for Guardian Child Care assets since late-2017 and yields have remained consistent through hot market periods to current day where COVID-19 has devastated other sectors.
On the strength of the 15-year lease, which commenced in February 2016, Mr Peluso continued; “Guardian is one of the country’s most sought-after childcare covenants, given its premium offering and strong reputation amongst both parents and providers.”
Mr Tat added that the Government’s substantial financial backing of the early learning sector in recent times had reinforced confidence in the sector.
“With the Australian Government willing to further underpin this space, even during a time of economic crisis, it’s a clear indicator of its commitment to supporting childcare.”
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