Melbourne

Inaugural 2018 Child Care Auction Achieves Premium Result

The first childcare investment for 2018 has sold at auction, proving that the childcare sector is still very much a sought-after asset class for commercial investors.

14 Mar 2018

The first childcare investment for 2018 has sold at auction, proving that the childcare sector is still very much a sought-after asset class for commercial investors.

3 Nexus Street, Ravenhall sold at a CBRE Victorian Health, Aged and Childcare auction for $3.88 million after a relentless campaign process headed up by CBRE agents, Sandro Peluso, Josh Twelftree, Kinson Wong and Bianca Butterworth. The vendor was Salvatore Cullia of Four Properties.

Transacted on a passing yield of 5.8%, the well-attended auction featured multiple bidders. Anchored by auctioneer Paul Tzamalis, the outcome demonstrated on-going investor confidence within the childcare sector.

“Fierce competition proved that underpinning factors such as high-quality tenants, an increasing population, favourable government policies and the sector’s resistance to digitalisation will continue to drive investor demand into 2018,” Mr Twelftree said.

Leased to global childcare operator Kool Kidz, Nexus Street featured annual income of $225,000 and is licensed for 130 childcare places. A significant landholding of approx. 3,044sqm anchored the site, with a building area of 1,032sqm.

Sandro Peluso added; “A lack of current investment stock atop many of the appealing demographic factors supporting childcare investment made this an appealing asset. Moving into 2018 we expect significant demand for childcare assets to remain, particularly for those sites underpinned by strong land values.”

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CBRE Group, Inc. (NYSE:CBG), 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 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.