Charter Hall lists childcare centre with development upside
Charter Hall is selling one of the more valuable childcare centres from its Social Infrastructure Fund (CQE), in Sydney’s Cremorne.
The 129-place facility at 15-19 Parraween Street is expected to sell for over $17.3 million – a sub five per cent net passing yield.
Only About Children, which Bright Horizons bought from Bain Capital for $450m in 2022, is the tenant, with a lease expiring in 2038 with two 10 year options.
On 874 square metres zoned Mixed Use, the underlying land value is also expected to grow moreso than most other childcare centre investments, CBRE’s Marcello Caspani Muto, who is the marketing the investment with Sandro Peluso, Toby Silk and Jimmy Tat, said.
The listing comes a month since we reportd Charter Hall, for CQE, banked $3m – a 4.63pc return – for a G8 backed centre in Ipswich.
Charter Hall quits trophy centre
Over three levels, 15-19 Parraween St contains 1078 sqm over four floors and 18 car parks in a basement.
Any incoming owner won’t be liable for land tax, the agents said (story continues below).
The deal could be the priciest for an Australian asset of this type since a Brighton sale in March worth $17.5m.
The most expensive childcare centre ever to sell in the country, worth $21m in 2019, was for an Artamon complex, near Cremorne.
“While our team has seen record breaking levels of premium centres marketed and successfully transacted nationally over the past 18 months, a trophy early learning offering in NSW of this kind of extremely rare and as such we have seen minimal notable results here for a period of time,” Mr Caspani-Muto, said.
“This has been driven by higher land costs and a limited availability of sizeable land parcels within metropolitan Sydney,” he added.
“Greater levels of generational wealth across the state also mean when private families or institutional buyers acquire long term investment grade stock they are seldom re-sold and rather held across multiple generations,” according to the executive.
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