Melbourne City Mission divests historic Hartnett House
Melbourne City Mission has sold its second last childcare centre after bowing out of operating in the sector.
Hartnett House in inner north Brunswick collected $7.9 million from a local investor ahead of the close of an expressions of interest campaign.
On 3439 square metres with a distinctive, freshly renovated Edwardian containing 1443 sqm, it is licensed for 126 children.
Frolic Early Learning is on a lease expiring in 2039 with fixed annual 3.5pc rent rises.
With options the group can stay until 2059.
The deal comes three days since we reported Presbyterian Aged Care sold BaptistCare a portfolio of three properties including its last aged care asset.
Next chapter for heritage site
MCM held the Brunswick property – developed from 1910, extended with the Salvation Army in 1934, in previous incarnations, an orphanage, healthcare hub and counselling centre – for over a century.
Until recently, it operated a childcare centre out of it (story continues below).
“The heritage overlay did limit the long-term alternative use potential in the eyes of many buyers,” CBRE’s Sandro Peluso, who marketed 123 Albion St with Jimmy Tat, said of the campaign.
“That said, the character of the building and substantial renovations completed by the tenant prior to the listing demonstrated their long-term commitment,” according to the executive.
The agency managed the sale of the business last year too, when MCM ceased operations.
“The team also established the lease with Frolic Early Learning which…have two existing centres in Victoria,” Mr Peluso added.
This pocket of Brunswick is about six kilometres from the CBD.
Following settlement, MCM retains a Doreen childcare centre it also once operated from, but now rents.
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