A leading property group has got its hands on a sought-after childcare asset in north-west Melbourne in a deal worth $8.6 million.
HomeCo acquired the childcare site at 138 Hoffmans Road in Essendon just weeks after securing a similar asset in Tarneit for $6.57 million, as the entire childcare property sector adapts to a new normal.
CBRE’s healthcare and social infrastructure team of Sandro Peluso, Josh Twelftree, Marcello Caspani-Muto and Jimmy Tat transacted both childcare deals and are well placed to comment on the changing buyer trends.
“These sales highlight the emergence of property funds and syndicates as the most aggressive buyers in the $6m+ childcare price range,” Josh says.
“While it used to be the private investors that would out-muscle property funds and syndicates, the tables have now turned,” he continues.
The 804sqm Essendon centre boasts a net income of $457,275 and is tenanted by Guardian Early Learning after the Swiss-owned childcare group recently renewed a 10-year lease.
Sandro has backed the flourishing childcare sector to be at the forefront of the country’s economic revival after figures revealed it has contributed the most to national CPI in recent months.
“The Australian Government’s continued investment in this space, even during a time of economic crisis, is a clear indicator of its ongoing commitment to supporting childcare,” he says.
“It highlights how important the childcare sector is to the Australian economy, with a number of studies even pushing for a further increase in sector support to help restart the economy.”