Melbourne

Investors circle child care investment opportunities

A prominent Melbourne child care centre at Bentleigh has been listed for sale amid continued strong interest in child care investment opportunities.

03 Aug 2018

A prominent Melbourne child care centre at Bentleigh has been listed for sale amid continued strong interest in child care investment opportunities.

CBRE’s Josh Twelftree, Sandro Peluso and Kinson Wong have been appointed to steer the Expressions of Interest campaign for the 188 Tucker Road centre, which is leased to Buckets Early Learning.

Mr Twelftree said the campaign dovetailed with changes to the Federal Government’s Child Care Subsidy, aimed at making child care more affordable for most families.

“Providers are now directly subsidised by the government, further strengthening the security of child care as an asset class,” Mr Twelftree said.

“There is particularly strong interest in centres situated in affluent growth corridors such as Bentleigh, which offer long term lease covenants and guaranteed rental growth.”

The purpose-built Bentleigh property offers a new 20-year lease with two 10 year options. The commencing income is $648,000 per annum + GST and outgoings, with fixed 3% annual increases.

The centre was completed in early 2017 and is approved for 144 long day care places. It occupies a high exposure, 1,310 sqm site and includes basement parking for 29 cars.

Mr Peluso said the tenancy covenant would be a significant draw card for investors, providing long term income security.

Buckets Early Learning is a family owned, premium operator with three centres in Melboune and over 20 years of management experience.For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

About CBRE Group, Inc.

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 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.