A childcare centre investment in Mount Helen – on Ballarat’s southern outskirts – has traded for $4.275 million, a deal which reflects a 6.4 per cent passing yield.
The 120-place facility, 1848 Geelong Road, was purpose built for Goodstart Early Learning in 2005.
It was offered for sale with two years left to run on a lease – the occupier locked in for a 5 per cent rent annual rent rise.
With options, however, the tenant can stay until 2032.
The investment occupies a high-profile 3187 square metre corner block opposite Federation University and commercial buildings occupied by IBM as data centres.
Ballarat Technology Park (a campus style commercial complex also part-rented to IBM as well as Ambulance Victoria and ESTA), and offices occupied by not-for-profit group Berry Street and State Revenue Office, are amongst the other neighbours.
Mr Stafford said “the sale price highlights the ongoing demand we are experiencing for income generating assets with high quality tenants throughout Victoria”.