Charter Hall lists Melbourne childcare centre with development upside
Charter Hall is selling a childcare centre developed on a prime piece of a 7500 square metre amalgamation earmarked 13 years ago for a major mixed-use village.
The Brighton East investment, part of the South Road commercial strip, could sell for more than $15 million reflecting a sub 5.5 per cent yield, according to sources.
Tenanted until 2037 – when Only About Children will be presented with the first of two 10 year options – the property holds significant long term development upside. Up to eight floors could be considered using present planning precedents, the marketing agents said.
“This asset features all the fundamentals international buyers seek in a passive long-term investment,” CBRE’s Jimmy Tat, who is marketing 409-411 South Road with Sandro Peluso and Marcello Caspani-Muto, added.
“A long-term lease to one of Australia’s highest quality tenants is the immediate drawcard,” he said of the 1887 square metre asset.
“However the…development potential and Activity Centre zoning makes this one of the most land-rich opportunities we have seen in the childcare sector,” according to the executive.
“The landholding is also a true island site with no adjoining neighbours”.
Last month, Golden Age Group received ministerial approval to replace the ex-Xavier College Kostka Hall, at 47 South Rd, Brighton – which it bought in mid-2022 – with 83 townhouses.
409-411 South Road
Developed in 2017, also fronting Barr Street and the Nepean Highway, 409-411 South Rd contains a 960 sqm improvement, approved for 140 children (story continues below).

Only About Children operates from over 80 facilities, Mr Peluso said.
“The property has an annual income of $823,107…with the tenant responsible for all outgoings, 50pc proportion of multi-holding land tax and CAPEX, excluding structural elements” he added.

The 2011 proposal, by Gillon Group, would have contained retail and over 200 dwellings – again in towers of eight storeys.
One of the lots in its amalgamation was acquired from VicRoads.
Others – including 409-411 South Rd, at the border of Bentleigh, Hampton East and Moorabbin – were from home owners.
Brighton East is about 11 kilometres south of Melbourne’s CBD.
The listing comes six months since a modern childcare centre in neighbouring Brighton, with 171 places, traded for $17.5m – a 5.19pc yield.
Subscribe to our newsletter at the bottom of this page.