Another Melbourne childcare centre fetches eight figures
A modern childcare centre in Melbourne’s leafy south east has traded for $10.795 million – or $80,000 a place.
The Ashburton complex at 356-358 Warrigal Road found favour with a Hong Kong investor in his maiden Australia property play.
Stonebridge’s Kevin Tong and Rorey James formalised the sale prior to the close of an expressions of interest campaign.
Their deal comes three months since a Heathmont asset of this type traded for just over $12m – a 5.8 per cent yield.
Also last year, following CBRE campaigns, Brighton and Brighton East childcare centres were offloaded for $17.5m and $16.5m respectively while a Nunawading complex fetched $12.4m.
In 2023 meanwhile HMC Capital sold an Armadale asset for $20.5m – the Victorian record.
Ashburton asset nudges $11m
Trading as Nino Early Learning Adventures Ashburton, the 134-place Warrigal Rd asset, on the south west corner of Orford, opened in 2018.
The 1683 square metres block once accommodated two dwellings.
The 932 sqm improvement rises two levels over 29 basement car parks.
Annual net rent is $694,139 ex-GST (story continues below).
The suburb, 12 kilometres from town, carries a c$1.9m median house price.
“The eventual purchaser was an investor from Hong Kong our team had been dealing with over several months,” Mr Tong said.
“Given they were traveling through Melbourne during the Lunar New Year period it was a perfect time to get them engaged on the asset,” according to the executive.
Lunar New Year showcase
Mr Tong added the deal was on the back of two weeks of Lunar New Year celebrations in which the company hosted several events – on with over 130 attendees – and meetings.
“Overall sentiment and feedback from the offshore buyers remain positive with many of these groups cashed up and eager to buy,” he said.
This buyer pool bought just over half the Victorian childcare centres the agency listed last year, according to the executive.
Mr James added sentiment from both investors and vendors was up in recent weeks – even before last week’s interest rate drop.
“While the yield for [Ashburton] was influenced by a higher rent and upcoming market review, the sale should provide the market confidence of the continued demand for Victorian childcare assets” he said.
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