A private investor has acquired a long-standing Brunswick childcare centre owned by Melbourne City Mission (MCM) for $7.9 million.

CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat managed the sale of the property at 123 Albion Street, prior to the formal Expressions of Interest close date.

The sale price of the recently renovated property, situated on more than 3,500sqm of land, reflected a 5.5% yield. 

The property has a 15+10+10 year lease to Frolic Early Learning with fixed annual increases of 3.5%. It generates an annual income of $441,000 and is operational for 126 places.

Mr Peluso noted the location of the property was of initial interest, the heritage overlay did limit the long-term alternative use potential in the eyes of many potential buyers.

“That being said, the character of the building and substantial building renovations completed by the tenant prior to the listing demonstrated their long-term commitment to the site. The buyers understood the demand for childcare services in this area and the likely long-term success of the tenant,” he added.

Mr Peluso and his team also managed the sale of the business at the same premises six months ago when MCM ceased childcare operations. The team also established the lease with Frolic Early Learning whoare new entrants to the sector and have two existing centres in Victoria.

Mr Caspani-Muto said, “With many Victorian childcare centres being traded at yields of 6% or softer,this is a great result. The consistent approach of our team is driving highly successful yield outcomes for clients.”  

The CBRE team have sold four childcare centres in 2025 with a further two under offer, making it one of the most active quarters in the team’s history. Read More CBRE Childcare news and activity 2025 below: 

More CBRE Childcare news and activity 2025:

Cheltenham childcare centre for sale – CBRE | Commo.

Brand-new leased childcare centre for sale - CBRE

Village Early Education secures lease in Melbourne - CBRE

Newly renovated Brunswick childcare centre for sale - CBRE 

Early Learning Investment Leased To Private Equity Backed Giant - CBRE 

Lease secured for Hawthorn childcare centre development - CBRE | Commo.

International investors acquire Guardian-leased childcare centre - CBRE  | Commo.

First Childcare centre investment for sale leased to Nino by CBRE | Commo.

New St Albans childcare centre leased to Whiz Kidz by CBRE | Commo.

More CBRE Healthcare news 2025, incluidng Medical Centres, Day Hospitals, Animal Hospital, Aged Care, Cancer Care Centre, Physiotherapy, Salvation Army and others: 

Prime healthcare investment for sale in Rosebud by CBRE | Commo.

Minuzzo secures permit for $50M state-of-the-art medical centre in Woodville South | Commo.

Icon Cancer Centre joins the New Epping Health Hub to bring world-leading cancer care to Melbourne’s north | Commo.

East Melbourne day hospital sold to Asian-based investor group - CBRE | Commo.

Animal hospital in South East Melbourne for sale by CBRE | Commo.

Opportunity to breathe new life into Central Coast aged care home for sale - CBRE | Commo.

The Salvation Army relocates in Clyde North - CBRE | Commo.