Doncaster East childcare centre for sale

One of Victoria’s biggest childcare centres in Doncaster is set to sell for circa $19 million on the heels of the state’s largest childcare investment sale. 

Located at 1 Lauer Street, the childcare centre was built in 2022 and has a 15-year lease to national childcare operators Imagine Early Learning with an annual rent of $939,750 and lease options until 2048. 

The lease structure is triple net with Imagine Early Learning paying all outgoings including maintenance, insurance, rates, management fees, land tax and all capital expenditure. 

CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat are managing the sale via an International Expression of Interest campaign closing October 24, 2023.

“We continue to see investors overlooking short term headwinds in relation to interest rates, with many holding the view there is a significant buying opportunity over the course of 2023. This appetite has been pronounced in suburbs like Doncaster, Mr Peluso said.

We know the future development pipeline has declined significantly in the childcare market from both a data and first-hand leasing perspective. As too much capital continues chasing too few opportunities from 2024 and beyond, we believe there will be substantial yield compression ahead, even further future rate cuts.”

Mr Tat added, “Commercial investment opportunities are plentiful in the marketplace and offshore investors have the luxury to pick and choose, but investment opportunities with a triple net lease are hard to come by and international investors just love them as they provide piece of mind regarding paying more now to save in the long run.”