Melbourne

Historically significant site to become one of Victoria's most impressive childcare centres

Tom Shelton’s Birdport Property has listed its premium childcare centre, worth over $7 million, in the Melbourne suburb of Kensington for sale – reflecting a resurgence in the premium childcare asset market.

29 Oct 2019

Birdport Property has listed its premium childcare centre, worth over $7 million, in the Melbourne suburb of Kensington for sale – reflecting a resurgence in the premium childcare asset market.

The former office building-turned-childcare centre has a land area of 824sqm and a building area of 1,451sqm, it features a passing income of $450,800 and is zoned Mixed Use – allowing for development of up to eight-storeys.

The landmark site at 64-66 Stubbs Street is well-known for its red brick finish, the only one in the area, and benefits from dual street frontages. 

The centre’s building is classified by the state government as historically significant for demonstrating the historical and social development of the area (Kensington), making it of important aesthetic or scientific contribution.

The CBRE Healthcare & Social Infrastructure team, including Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto, has been appointed to market the property for sale.

Sandro Peluso said the investment would be hotly contested, with significant local and offshore enquiry expected given the site’s proximity to the CBD and high land values. 

“With the median house price at circa $1,000,000, the area is a hotspot for property investors,” Mr Peluso added. 

“The landmark nature of this site is expected to drive additional demand, on top of the already appealing investment features expected from a childcare listing.”  

Limited blue-chip offerings have come to market in 2019 and, excluding the current portfolio of centres, the last premium transaction was 97 Tope Street, South Melbourne, which transacted in early March.

The CBRE team recently launched a national education portfolio, worth circa $150,000,000, on behalf of nationally renowned developer and operator Mike Wu. 

“On the back of this, the Stubbs Street opportunity represents a buoyant market return for premium childcare assets after a subdued supply period over the course of 2019,” Mr Twelftree said.

Josh Twelftree added; “In addition to the site’s historical significance, its proximity to many globally renowned destinations, including the Melbourne Zoo and Flemington Racecourse, add investment appeal – additionally, significant levels of planned urban renewal are anticipated to enhance the locational demand.”

Located in the state government’s Arden Urban Renewal Precinct, an area slated to become a global knowledge hub and central city destination, Kensington has significant growth potential – the area is expected to act as a base for 34,000 jobs by 2051.

The precinct has been rezoned to cater for population growth and will create a sustainable living and working environment, featuring cycle paths, green spaces and a newly constructed train station, Arden Central.  

The property will be made available to the market via a public, onsite Auction on November 21, 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.

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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.