Childcare centre portfolio fetches $38.5m
A Middle East investor purchased the priciest childcare centre in a portfolio sold from February to mid-March.
The 120-place complex at 63-67 Canning Street, Avondale Heights, north west of Melbourne, traded for $9.2 million.
With 935 square metres and 25 basement car parks – on a 2287 sqm block – the asset is leased to Avondale Heights Child Learning until 2046 or 2066 with options.
CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat were the agents.
The deal comes six months since we reported Taverners Group, an investment vehicle owned by ex-Patricks Corporation chief Peter Scanlon, banked $8m – a 5.79 per cent yield – for a 102-place Nido backed centre in the suburb.
Vic, WA assets trade
Meanwhile, an Asia based investor outlaid $8.86m for 391 Murray Rd, Preston, in the city’s north.
Explorers Early Learning occupies the 980 sqm double storey building on 1141 sqm at the south east corner of Park Avenue, with 30 car parks.
Developer Neston was the vendor.
Also north of town, in Brunswick, Melbourne City Mission divested the historic Hartnett House.
A local investor bought the 126-place complex, 123 Albion St, for $7.9m, ahead of the close of an expressions of interest campaign.
Outside of Melbourne, at Golden Square, south west of Bendigo, a brand new 120-place complex at 110 Panton St leased to Discovery Bay Early Learning with options until 254, sold for $6.5m
Meanwhile – in Palmyra, near Fremantle, KM Funds Management has sold a recently completed complex at 56-58 Carrington St, for $6.05m.
The asset manager paid $2.2m in 2022 for the 2095 sqm plot which made way for the asset.
Nido Early Learning is on a lease with an initial 20 year term.
“While there is no shortage of domestic capital in Australia, we have seen more of a hesitancy issue with buyers not willing to pull the trigger on quality assets,” Mr Peluso, who also brokered these deals with Mr Caspani-Muto and Mr Tat too, said.
“We expect to see a return of this capital, but in the interim we’ve needed to be more creative with our investor sourcing and expanding our reach into Dubai and Abu Dabi is proving highly successful,” he added.
“There is a great store of wealth with these buyers and some are expats of Australia or the UK,” Mr Caspani-Muto said,” according to the executive.
Earlier this month we reported $205m of childcare centres have traded this calendar year – a sharp rise on the same period in 2024.
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