Trophy early learning centre investment opportunity in Aspendale

A recently built two-level childcare centre in Aspendale has hit the market and is expected to attract significant investor interest.

Located at 13-15 Station Street, the centre is licensed for 142 childcare places and is leased to Guardian Early Learning on a 15-year initial term to 2039 with two further 10-year options to 2059. The property has a passing rent of $688,700.

CBRE’s Australian Healthcare and Social Infrastructure team of Sandro Peluso, Jimmy Tat and Marcello Caspani-Mut are managing the sale via an Expressions of Interest campaign.

Mr Tat said, given recent comparable sales results, the Aspendale property was expected to deliver returns of circa 5.5%.

“Guardian have more than 170+ centres across the country and are still growing rapidly. Owned by Partners Group, one of the most active private equity investment firms in the world, with more than $147 billion USD under management, Guardian-leased assets are considered some of the most prestigious in the early learning market. Guardian have a terrific track record of success in this region of Victora and operate four centres between Langwarrin and Mentone - all of which are either at 100% capacity or very close to capacity,” Mr Tat said.

Mr Peluso added, “Sophisticated investors know short-term yield opportunities in this sector are incredibly rare, so they are looking to capitalise and grow their portfolios now. Operationally, the sector itself is performing with incredible strength. Increased government funding has been announced and will be effective from December 1. This includes a wage increase of 15% for staff, pending providers cap their annual fee increase below 4.4%. This funding is expected to further improve asset performance, and the well-deserved pay rise will improve staff attraction and retention in the sector.”

The Aspendale listing comes just weeks after the team sold a childcare centre, also leased to Guardian, at 88 Potts Road Langwarrin to a private investor for $8.7million.