An interstate investor has spent $6.37 million on an as-yet-unbuilt childcare investment in Melbourne’s south-east.
Zoned Commercial 2, the 3732 square metre site is within Cbus Property’s Estate One business park which is taking shape at 81-125 Princes Highway.
Leased to Kool Kidz childcare for 15 years, 11 Assembly Drive is exchanging on a 6 per cent yield.
The childcare operator has two lease renewal options, each of 10 years, potentially seeing it based at the site until the mid-2040s.
Mr Spargo said 11 Assembly Drive adjoins the Village Dandenong Shopping Centre and has immediate access to the Princes Highway, M1 and South Gippsland Freeway.
The location, lease covenant and yield were what attracted the purchaser to the property, the agent added.
“We are seeing a heavy increase in enquiries from interstate investors – looking to acquire commercial real estate in Melbourne,” Mr Jones added. “This is mainly due to the city’s booming population and forecast to take over Sydney as the largest city, population wise, in the country”.
Estate One is being built on a 46-hectare site owner-occupied between 1956 and 1996 by General Motors Holden as a car making plant.
GMH sold the asset to Phileo Australia for $22.5 million in 1997.
After master-planning an industrial redevelopment and constructing a couple of buildings, Phileo Australia offloaded the block Cbus for $136.5 million in 2007.
Cbus has been building on the block since: in 2016 it sold a near-new investment grade office at 45 Assembly Drive to IOOF Investment Management for $20.05 million.
Two months ago, it banked $4.25 million trading a modern warehouse at nearby 49 Assembly Drive.