Hume Partners has secured a childcare centre near the 127.8 hectare former Defence Explosive Factory, also known as the Maribyrnong Defence Site, which is longer term expected to be replaced with thousands of homes.
Also neighbouring Avondale Primary School, the eight month old asset, on 1414 square metres with 16 car parks at 5-7 Clarendon Street, Avondale Heights, is setting the fund manager back c$8 million.
With 732 sqm over two floors, it returns annual net rent of $428,400.
The initial lease to occupier Nido expires in 19 years but with options, can extend to 2062.
The rental agreement is also structured so the tenant pays annual increases of CPI plus 0.75 per cent.
The occupier also picks up outgoings including land tax. Being near-new, Hume Partners will also be able to claim depreciation benefits.
Avondale Heights is about nine kilometres north west of Melbourne.
The Clarendon Street site, previously accommodating the Avondale Heights Kindergarten, was before 2014 owned by the Moonee Valley City Council.
Childcare centre replaced apartment proposal
The same agents are also marketing another near-new, larger one in the suburb – built in place of an apartment project.
On 2287 sqm at 63-67 Canning St, and returning annual net rent of $596,711, trading as Avondale Heights Early Learning, it carries c$10m price hopes.
Canning St is even closer to the Maribyrnong Defence Site than Clarendon St.
“There is a clear appetite for investment in the area and with numerous underbidders missing out on the Clarendon St transaction, we are expecting interest in Canning St to be high,” Mr Peluso said.
“Avondale Heights Child Learning has been successfully running since 2009, a testament to its operational strength and the scarcity of both existing and forthcoming competing centres in the catchment,” he added.
Nescon is the vendor. Years ago the site, overlooking the Maribyrnong River and Medway Golf Club, accommodated a dwelling.
“Prior to construction, the property was earmarked for a residential apartment project and with the growth of high density offerings across the neighbouring Maidstone and Moonee Ponds areas, and the site’s elevated views, its not hard to see this being highly attractive in 20 to 30 years time,” Mr Caspani-Muto said, pointing to the long-term development upside.
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