A childcare centre operator has outbid residential developers to snare a large site in Melbourne’s north-east.
Alpha is paying $3.25 million for the 1931 square metre holding – three neighbouring residential homes – covering 54-58 Thompsons Road, Bulleen.
The offering (pictured top, left and bottom) was targeted to a range of prospective builders. Its zoning – General Residential – was expected to attract developers which might consider replacing the site with a medium density townhouse or low-rise apartment complex.
The median price for units in Bulleen is $748,000 according to the Real Estate Institute of Victoria – well above the metropolitan Melbourne average of $604,000.
Instead the property will make way for a childcare centre – a sector which has been making headlines in recent months given, amongst other things, investor demand.
In August, a China-based investor paid $11.3 million, reflecting a yield of 5.97 per cent, for a childcare complex under construction on a 2186 sqm block at 31 Nepean Highway, Elsternwick.
Two weeks ago, another Chinese investor paid $11.7 million for an asset in Bentleigh (this deal was struck on a yield of 5.5 per cent passing yield).
This week, a modern childcare complex at 189 St Helena Road, in the Greensborough pocket of St Helena – was listed for sale. If it too sells on a sub six per cent yield, the vendor will be celebrating a payday of more than $7 million.