Mixed use asset in Doreen, anchored by a childcare centre, sells for $15 million

A mixed-use asset anchored by a childcare centre in Doreen, in Melbourne’s north-east, has traded for $15 million to a Singaporean investor with a local partner.

The corner site (pictured top and bottom), measuring 2780 square metres, includes a three-level centre anchored to a Guardian Childcare facility with a licence for 135 places.

The 3753 sqm building at the intersection of Painted Hills and Hazel Glen drives, also occupied by retail tenants including real estate agency Fletchers and gym, Twelve Round Fitness, returns annual rent of $871,324.

On this basis it is trading on a passing yield of 5.8 per cent.

“The sale of this landmark retail and childcare centre asset demonstrates the strong market appetite for premium property generating solid income in growth locations,” Savills broker Clinton Baxter said.

Mr Baxter, who marketed the site with colleagues Jesse Radisich and Benson Zhou, added that the property is one of Melbourne’s primary growth corridors.

“The recent opening of the Mernda rail extension and extensive housing estate development has provided a huge boost to the local area, providing investors with the opportunity to capitalise on one of Melbourne’s growth hot spots,” Mr Baxter said, adding that “off-shore money continues to flow into the Melbourne market in abundance”.

An aerial view showing the property in Doreen (outlined), in Melbourne’s north-east.

Marc Pallisco

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

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