Bridport Property Group – which is directed by Tom Shelton – has sold a childcare centre investment in Melbourne’s inner north west Kensington for $8.25 million.
The facility will be built into a historic double-storey red brick office at 64-66 Stubbs Street.
Based on the annual rent Kids Club will pay upon taking occupancy next year ($450,800) – the deal is being struck on a 5.4 per cent yield.
The tenant has signed a 15-year lease agreement for what will be a 92-place centre.
The facility will include 1421 square metres of area.
Kensington is about four kilometres from the Melbourne CBD.
Kensington’s Stubbs Street, connecting North Melbourne to Flemington, is set for a wall of apartment towers
The 64-66 Stubbs Street property occupies an 821 square metre Mixed Use zoned plot at the north west corner of Scarborough Place.
The Kensington land was recently rezoned as part of the government’s Arden Macaulay Precinct Structure Plan which has an end goal to rebuild the area’s plentiful industrial properties with alternative product, particularly high-density housing.
Bridport is proposing one of these redevelopments: as we reported last September, an eight-storey building is earmarked to replace three warehouses between 415-423 Macaulay Road.
Fifteen months ago, Nicole Chow’s United Asia Group paid Vision Australia a speculated price of more than $30 million for an 8803 sqm site at 346-350 Macaulay Road, on the north west corner of Stubbs Street (image, below).
Built for TNT Logistics in 1998, the vendor acquired this holding for $9.2 million in 2008.
Rectangle shaped, walking distance to both the Macaulay and Kensington stations (which are on separate train lines), this site could make way for four or more major towers.
In April, Make Ventures paid $17.5 million for 88-96 Stubbs Street – a 3986 sqm factory block it plans to replace with development partner, Assemble Communities, into a build-to-rent apartment building.
Kensington’s biggest redevelopment is, arguably, Impact Investment Group’s proposal to create contemporary workplaces within two high profile Younghusband warehouses in Elizabeth Street.
Being developed in stages, the first, which will add 17,000 sqm of commercial space, this re purposing also includes a rooftop restaurant bar and 1 megawatt solar farm.
String of childcare centres listed this quarter
Elsewhere in childcare centre circles, a c$150 million portfolio of seven investments on Australia’s east coast was in September listed for sale by operators Mike Wu and his wife, Shan Kuo.
A $7.5 million-plus portfolio of three Victorian sites permitted for childcare centres, in Brighton East, Lara, near Geelong and Oakleigh, were in October put to the market by private investor Wilson Guo.
North west of the city, in Moonee Ponds, Moonee Valley Racing Club last month put a new childcare centre investment up for sale with price hopes of more than $6 million.
This asset, 2 McPherson Street, will be the first piece of the Moonee Valley Racetrack to be sold down by the Moonee Valley Racing Club in over 100 years.
The Stubbs Street, Kensington, property is one of the more valuable Melbourne childcare centres to trade this year.
Elsewhere in the inner-city, we reported in April about Melinda Cohen selling a South Melbourne complex for $10.25 million. This complex, 97 Tope Street, reportedly just had $6.3 million spent on a fit out.