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: