An overseas investor has purchased a Melbourne childcare centre in an off-market deal worth in excess of $8.2 million.
The 117-place Kids Club Child Care centre in Ringwood changed hands earlier this month, marking the latest transaction in a blossoming property sector.
Sold by CBRE’s Healthcare and Social Infrastructure team on behalf of Melbourne-based developer, Bridport Property Group, the $8,200,888 deal was made before the property was taken to market.
Bridport Property Group Director Tom Shelton says he is delighted with the transaction of the two-storey, 1,677 sqm site in Melbourne’s eastern suburbs.
“This is a solid outcome for an off-market transaction which reflects the current strength of the sector as well as the great location adjacent the Maroondah Private Hospital,” he says.
Kids Club Child Care are currently tied down to a 15-year lease, with two further options to extend of 10-years each, making the asset an attractive proposition for investors.
CBRE’s Jimmy Tat says he expects interest in the sector to go from strength to strength as buyers look to capitalise on an increasingly secure asset class.
“Childcare is a sector that many investors – domestic and international – have historically had their doubts about in regards to continued growth year-on-year,” he says.
However, ongoing government support has seen the sector emerge better off than most – cementing international buyer confidence. We’re now seeing many investors set their sights on early learning centres for 2021.Jimmy Tat – CBRE
The Ringwood childcare centre is located at 30-32 Grey Street and CBRE’s Sandro Peluso explains that he was able to place a buyer for the property thanks to his team’s growing childcare database.
“Current investment activity in this asset class remains as strong as ever, spurred by reduced volume activity in 2020,” he says.