ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Victorian Childcare Sector Set New Sales Records

Hughesdale-childcare-centre_620x380

The sale of five of six fully leased Victorian childcare centres for more than $44 million have set new national benchmarks for the sale of individual centres.

The sales were an average of $8.8 million each, and averaged 5.3 per cent yields.

The five centres at Ashwood, Mentone, Blackburn North, Hughesdale, and Carnegie – all in Melbourne’s east, were put to market last month as a whole or individually in the first such sale of its type in the Melbourne market.

The centres came to market as the Federal Government pushed through its $1.6 billion childcare package reforms, providing families with fee relief of up to $3400 a year.

Savills' Julian Heatherich said the properties presented an unprecedented opportunity to take a strong foothold in Australia’s booming child care market.

"This was a brilliantly assembled portfolio combining exceptional landholdings, quality buildings, geographic diversity and a tenancy profile that is rarely available elsewhere in the commercial property market," he said.

"Put this together with built-in rental growth and significant income tax depreciation benefits in a rapidly growing, government backed industry and they represent great value and that was reflected in the results so far."The five centres include:

  • 66-70 High Street Road, Ashwood - 15 year lease at $486,218 pa net – sold $9.1 million on 5.34% yield
  • 105A Kangaroo Road, Hughesdale - 20 year lease at $545,879 pa net– sold $9.75 million on 5.6% yield
  • 103-107 Koonung Road, Blackburn Nth - 20 year lease at $498,015 pa net– sold $9.28 million on 5.37% yield
  • 1 Toolambool Road, Carnegie - 20 year lease at $438,697 pa net– sold $8.2 million on 5.35% yield
  • 37 Venice Street, Mentone - 20 year lease at $367,822 pa net– sold $8 million on 5.44% yield
ADVERTISEMENT
TOP STORIES
CONTRIBUTE TO THE CONVERSATION
Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: https://https://theurbandeveloper.com/articles/victorian-childcare-sector-set-new-sales-records