Growth corridor childcare centre fetches $8.7m
A childcare centre development fund managed by Accord Property, created in 2015 by ex-Harmony Group founder Joe Walker and valuer, Lachy Hogarth, has sold a Melbourne growth corridor asset.
The $8.7 million result for 88 Potts Road, Langwarrin, reflects a 5.4 per cent net passing yield.
The incoming owner can also claim depreciation benefits; the asset opened this year.
Mr Hogarth said with the recent population growth in and around the suburb – between major activity centres, Frankston and Cranbourne – being a concentration of young families, supply hadn’t kept up with demand.
The tenant, Guardian Early Learning, operates out of two more complexes in the suburb, he added.
CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat were the agents.
Third local Guardian
On 2625 square metres, with a 784 sqm centre, 88 Potts Rd is licensed for 110.
Guardian is on a lease expiring in 2044 with options.
“This is Guardian’s third centre within Langwarrin,” Mr Peluso said (story continues below).
“Both other centres are at 100pc capacity with waitlists, a reflection of their success in the area and as an operator more broadly,” he added.
The deal comes five months since another new asset of this type in another Melbourne growth corridor suburb – Beaconsfield – traded for $8m, a 5.1pc return.
Fund manager HMC Capital sold a Nunawading creche last year fo $12.8m (a 5.3pc yield).
That asset was three years old – not offering the same depreciation benefits of Langwarrin.
In March meanwhile, a Brighton childcare centre fetched $17.5m – a record for the Bayside municipality and at the time, the second priciest asset of this type to sell in the state.
Accord Property is Adelaide based.
The unlisted early learning development and investment fund is backed by private investors.
Langwarrin is 42 kilometres south of Melbourne’s CBD.
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