Moonee Valley Racing Club sells childcare centre for $6.6 million

The childcare centre (outlined) occupies a 1925 square metre site six kilometres north west of the Melbourne CBD.

Moonee Valley Racing Club has banked $6.6 million selling a premium quality childcare centre built into and behind a historic former chairman’s residence at the north west tip of the Moonee Valley Racecourse.

Last month’s auction of 2 McPherson Street, Moonee Ponds, is the club’s first divestment of part of the 40-hectare racecourse in more than a century.

It follows MVRC recently launching an off-the-plan marketing campaign for a medium density housing estate, Feehan Row, on land west and south of the childcare centre.

Trophy childcare centre trades at 4.9 per cent yield

The sale price of $6,605,000, reflects a 4.9 per cent yield – the lowest for a Melbourne early learning offering worth less than $10 million, according to CBRE marketing agents Sandro Peluso, Josh Twelftree, Marcello Caspani-Muto and Jimmy Tat.

On a 1925 square metre block at the north east corner of Thomas Street, the 854 sqm centre opened six months ago.

Licensed for 91 clients, it is leased to Nido Early School on an initial 20 year agreement.

With options, the occupier could stay until 2059.

The investment is less than a kilometre from Moonee Ponds Junction – a major bus depot – and Puckle Street retail strip, near where Caydon is building major skyscrapers on part of the former Moonee Ponds Market site.

The suburb’s train station is about 500 metres west of Moonee Ponds Junction.

MVRC begins master-planned, $2 billion redevelopment: Moonee Valley Park

The childcare centre and proposed townhouse residences form part of a master-planned, $2 billion redevelopment of the Moonee Valley Racecourse to be known as Moonee Valley Park.

Permitted four months ago, the redevelopment will see 16 hectares in and around a realigned track opened as community space.

A new grandstand will be constructed at the northern edge of the site, on Wilson Street.

The part of Moonee Valley Racecourse accommodating the current grandstand and a car park (at the north-west corner of Dean and McPherson Street) will make way for high density apartment towers.

More blocks of flats are permitted for the north east tip of the Moonee Valley Racecourse site, abutting the Tullamarine Freeway.

The 40-hectare Moonee Valley Racetrack (shaded) is being part-sold down by Moonee Valley Racing Club, as part of its master-planned, $2 billion, Moonee Valley Park redevelopment.

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Marc Pallisco

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

Marc Pallisco