Childcare investment asset in Melbourne’s South-East brought to market

The opportunity to acquire a new childcare centre in Dandenong is expected to attract interest from a range of investors seeking resilient, income-producing social infrastructure assets.

CBRE’s Jimmy Tat, Marcello Caspani-Muto and Burgess Rawson from CBRE’s Natalie Couper are marketing the purpose-built centre located at 1536 Heatherton Road.

The asset is licensed for 91 childcare places and is secured with a 15-year lease to Whiz Kidz Early Learning – a trusted, multi-site operator with a strong presence across Victoria and NSW.

Mr Tat noted the childcare sector continued to attract deep buyer interest from both domestic and offshore investors, especially with the recent introduction of the Australian Government’s guarantee of at least three days of subsidised early childhood education and care each week.

“The three day guarantee fundamentally strengthens the childcare investment proposition by establishing a government-backed demand floor. Guaranteed subsidised hours improve occupancy certainty and cash-flow resilience, reinforcing childcare as a defensive, long-term social infrastructure asset” he said.

“By guaranteeing a minimum level of subsidised childcare access, the three day guarantee materially reduces demand volatility. For investors, this translates to greater enrolment stability and more predictable income streams across market cycles+,” Mr Tat added.

The asset is located within a well-established metropolitan catchment with strong population growth, family density, and access to key transport and employment hubs.

The property is situated on a landholding of approximately 1,650 square metres, offering prominent exposure to Heatherton Road and proximity to established residential precincts and major arterial routes.

These attributes are expected to support ongoing demand from early learning operators and reinforce the asset’s long-term investment appeal.

Mr Caspani-Muto noted recent transactions have demonstrated continued pricing strength across metropolitan Melbourne childcare assets.

“Market participants continue to view childcare assets favourably due to their defensive characteristics, stable occupancy levels, and alignment with government-supported education frameworks, distinguishing the sector from more cyclical commercial property classes,” he said.

“Recent CBRE-led sales have shown that high-quality childcare centres continue to transact at competitive yields of 5.3% - 5.5%, with strong interest from private investors, syndicates and offshore capital. This demand is underpinned by the essential-service nature of childcare, long lease profiles, and structural tailwinds including population growth and workforce participation,” Mr Caspani-Muto added.

The Expressions of Interest Campaign closes at 2pm (AEDT) on Thursday 26th February 2026.