Thornhill Park childcare investment opportunity hits the market

The opportunity to acquire a childcare centre asset, with an additional 840 sqm parcel of land that is permit-approved for a medical centre, is expected to attract interest from investors seeking income diversification and future capital growth potential.

Located at 1 Murray Road, Thornhill Park, the property is positioned within a rapidly growing residential catchment.

CBRE’s Healthcare & Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat are managing the sale.

The offering comprises a 15-year head company lease to 2060, including options, to Eden Academy, a leading national early education operator with a strong growth trajectory.

Mr Peluso said the listing builds directly on recent market momentum, with the sale of a childcare centre in Oak Park, at a yield of 5.35%, which was also leased to Eden Academy.

“This opportunity comes off the back of our recent market-defining result in Oak Park. Transacting another Eden leased centre at a yield of 5.35 percent. The tenant is really well received and highly sought after in the marketplace.”

The centre is licensed for 112 places and is supported by 24 on-site car spaces, providing long-term operational strength and tenant appeal. The asset generates a current annual income of $504,000 per annum plus GST and outgoings, underpinned by fixed 3% annual rental increases, delivering secure and compounding income growth.

Further strengthening the investment profile is a 840sqm parcel of land which is permit-approved for a medical centre, including 14 dedicated car parks, offering meaningful income diversification and future capital growth potential.

On a fully leased basis, the combined income is estimated at $629,500 per annum.

Mr Tat highlighted the strength of the underlying landholding and its appeal to offshore capital.

“The permit-approved nature of the included surplus land for a medical centre is essentially a bonus value-add initiative and this substantial underlying landholding is something we think will resonate incredibly well with the overseas investor market.”