Victorian snares Kingdom Hall converted childcare centre

The asset (outlined), about 21 kilometres north east of Adelaide.

A Jehovah’s Witnesses Kingdom Hall replaced three years ago with a childcare centre, in Adelaide’s north east Golden Grove, has sold to a Victorian private investor.

The $8 million deal for 2-8 Botany Drive, at the north east corner of The Golden Way, reflects a 5.75 per cent net passing yield.

The Golden Grove centre is licensed for 122 children.

Nido Education is the tenant on an initial lease expiring in 2041 with annual rent rises fixed to CPI plus a per cent.

The ASX-listed giant also picks up outgoings including land tax.

With options it can stay until 2061.

CBRE’s Sandro Peluso, Jimmy Tat, Marcello Caspani-Muto and Rhyce Scott, who closed an expressions of interest campaign mid-February, said the deal is the priciest for a South Australian childcare centre since 2022.

Prime site, growth corridor

On 4496 square metres with 31 car parks, the Golden Grove asset is licensed for 122 children.

The internal area spreads 843 sqm

In a growth corridor, the address is walking distance to The Grove Shopping Centre, Groveway Medical Centre, Village Hotel and several primary and secondary schools (story continues below).

A near new Ripley childcare centre also sold this quarter.

The deal comes three weeks since another private investor, in their maiden childcare centre acquisition, outlaid $7.6m for an asset of this type in Brisbane’s Ripley.

A Brighton childcare centre recently traded for $17.5 million.

Since the start of this year, in Melbourne, a total of some $40m has been spent on centres in Beaconsfield – another growth corridor location – Brighton and Nunawading.

“This [Golden Grove] transaction is the team’s sixth in as many weeks across Victoria, South Australia and Western Australia,” Mr Caspani-Muto said.

“The majority of our transactions occur via private capital or syndicates,” he added.

“These buyers continue to take a medium to long-term view of their passive investments and are willing to overlook the short-term cost of borrowing, if they are borrowing funds at all, to secure their investment future for the next 15-plus years,” according to the executive.

“A more proactive approach to buyer education has also been critical in achieving these outcomes.

“Cash flow analysis, cost of capital comparisons and factoring in the benefits of depreciation alongside fixed rental growth has all been critical to demonstrate the positive cash flow nature of these assets even if they are purchased below the cost of debt at a surface level”.

Golden Grove is just over 20 kilometres from town.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of