An international investor has purchased a childcare centre in Glen Huntly in Melbourne’s south-eastern suburbs for $9.51 million via a competitive expression of interest campaign.
The sale of the 1,100sqm property at 181 Grange Road reflects one of this year’s sharpest capitalisation rates in the sector, with an initial yield of 4.5%.
CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto acted as sales agents for the private vendor.
''The yield achieved represents the sharpest of 2021 for an early learning centre with a rental per place in excess of $5,000. Investor education in relation to the tenant was key during the process and critical in giving buyers the comfort required to maximise price.''
The modern facility opened in 2017 and is occupied by Buddies Early Learning, one of the area’s most-esteemed operators with a substantial waiting list, on a 15-year lease.
For the buyer, a private, high-net worth international investor, the site is their first foray into the childcare sector.
“This transaction emphasises the strength of the childcare investment market this year,” Mr Peluso said.
“We are seeing results matching the peaks of 2017, and we’re expecting this trajectory to continue well into 2022.
“This property was highly sought after given its postcode and the quality of its covenant.
“Buddies Early Learning is a high-quality local provider focusing on a small number of centres, with its Glen Huntly site operating at an occupancy well above 90% in 2021, and boasting a two-year waiting list.”
“Achieving yields well into the 4% range for assets at this price point is significant, and a real indicator of where the market is heading,” Mr Tat added.
“The property features a rental of approximately $5,500 per child, and offered the market an insight into how childcare rentals are set and the benefits of a strong operator with near-100% capacity.”
