New Rowville childcare centre investment trades for $6.9 million
A new childcare centre investment in Melbourne’s south east Rowville has sold for $6.9 million.
At 1028 Wellington Road, Greenwood Early Education Centres has signed a 15-year lease for the 124-place complex.
In 2033, it can exercise options to renew until 2048.
The 831 square metre purpose-built complex occupies a 3195 sqm site with 27 at-grade car parks.
It offers the incoming owner several years of depreciation-based tax benefits.
Greenwood, which is managed ASX-listed G8 Education, worth $1.47 billion and with a portfolio of more than 500 childcare centres, is paying all the outgoings including land tax as part of its lease.
Based on the investment’s annual rental return ($402,318), the Rowville property is selling on a 5.8 per cent net yield.
The rent is set to rise 3 per cent each year until 2033.
Burgess Rawson’s Adam Thomas, Natalie Couper and Al Bogdani marketed 1028 Wellington Road.
