Elsternwick childcare centre sells for $11.3 million

31 Nepean Highway, Elsternwick, prior to refurbishment

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.

The brokers were Sandro Peluso, Bianca Butterworth, Josh Twelftree and Jimmy Tat.

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.

 

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Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au

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