Melbourne childcare investments collect $28.5m in three weeks

The new Burwood complex (also pictured, top) sold for $7.11 million reflecting a 5.39 per cent net yield.

Five Melbourne childcare centres have sold in the last three weeks – with another, pricier than all of them, expected to before the end of the month.

In Burwood, a 73-place complex at 1 Sparks Avenue (pictured, top) is trading for $7.11 million reflecting a 5.39 per cent yield.

It is tenanted to AMIGA Montessori which, with options, can stay until 2065.

In Cranbourne West, another recently completed facility which the occupier (Imagine Childcare and Kindergarten) can also rent for up to 45 more years, is exchanging for $6.91m – a 5.58pc net return.

Nine kilometres east of there, 20 Alphey Rd, Clyde North, is selling for $5.225m (a 5.67 per cent net yield).

Coincidentally that tenant, One Early Learning, can stay until 2065, too.

West of town, 29-33 Unitt St, Melton, is trading for $2.64m – a 5.87pc net return (story continues below).

On a 1227 sqm Commercial 1 zoned parcel, it is leased to Mayfield Childcare for five more years (or 2040, with options).

Burgess Rawson’s Natalie Couper and Adam Thomas marketed it and the Cranbourne West investment; Aston’s Liam Rafferty and Jeremy Gruzewski brokered the Clyde North deal while Savills’ Julian Heatherich, Mark Stafford and Benson Zhou found the Burwood buyer.

A fortnight ago we reported HomeCo paid $6.56m (showing a 5.76pc return) for a Tarneit child minding investment.

The same purchaser is also speculated to be behind an $8m-plus Essendon childcare centre deal.

Last week Primewest paid $70m for the Melbourne Square Shopping Centre which includes an 87-place babysitting facility.

In October an operator spent $2.2m on a Greenvale block permit-ready for a 190-place investment.

The near-new Cranbourne West facility traded for $6.91 million last week.
The Clyde North child minding investment which sold for $5.225 million late last month.
The Melton property is opposite two primary schools.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco