A China-based investor has paid $11.3 million for a childcare centre in Elsternwick – the highest priced sale for a Victorian property of this type, this year.
The asset, under construction at 31 Nepean Highway, was offered with a 20-year lease to Nino Early Adventures which will pay a starting annual rent of $675,000 with fixed 3 per cent annual increases.
On that basis, the property, about nine kilometres south-east of the Melbourne CBD, is trading on a yield of just under 6 per cent.
Spread across a 2186 square metre site, and zoned General Residential 1, the offering includes a historic mansion which is being extended and converted into a 128-place child minding centre.
The building will include 1024 sqm of internal area and a 283 sqm rooftop play zone. Surrounding it are playgrounds, gardens and an open-air car park.
The site is a few hundred metres from two elementary schools: Elsternwick Primary and St Joseph’s Primary. Elwood Primary School is 1.1 kilometres away.
CBRE’s Victorian Health, Aged and Child Care division closed the sale on Thursday night following a private sale campaign.
Earlier this month the same agency listed for sale another childcare in Bentleigh, which is about four kilometres further south-east of the city, than Elsternwick.
That 12-month old investment, returning annual rental of $648,000, and also being offered with a 20-year lease (to Buckets Early Leaning), is at 188 Tucker Road.