Charter Hall sells office turned childcare centre
Charter Hall has sold an office turned childcare centre in Melbourne’s south east for $12.5 million – a low 4.99 per cent yield.
The deal for 491 Highett Road, Highett, with a local private investor, prices each place at $111,607.
“There is a substantial disparity in pricing between assets at present,” CBRE’s Marcello Caspani-Muto, who brokered the deal with Sandro Peluso and Jimmy Tat, said.
“It’s no secret investors have been wanting to keep their power dry over the past 12 months,” he added.
“However, transactions like this point to signs of short-term yield compression across the sector,” according to the executive.
“Our team has transacted four centres already this year with below yields of 5.5pc”.
The deal comes eight months since Charter Hall sold a Brighton childcare centre for $16.5m – again, a 4.99 pc return.
Also last year it offloaded a Cremorne, Sydney, asset of this type, also occupied by Only About Children.
That result – $18.5m– reflected a 4.7pc yield.
It has been a busy year for childcare centre deals with transaction value up 58pc in the first quarter of this year, agents say, compared to 2024.
For that time, $205m of assets changed hands.
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