Sydney-based Mike Wu and Shan Kuo, husband-and-wife developers and childcare centre operators, are set to divest a portfolio of owner-occupied venues worth more than $150 million.

The founders of Little Lane Learning and Avenues Early Learning Centre are selling seven assets across Sydney, Melbourne and Brisbane, including the duo’s newest operational building.

Situated in Melbourne’s blue-ribbon suburb of Hawthorn, 555 Glenferrie Road is being offered on a WALE of 15 years and an income of $1.2 million per annum, with the tenant covering outgoings and GST.

Another key asset at 239 Pittwater Road in Manly, currently under construction and to be completed in November this year, offers incoming owners the same annual income on a lease term of 15 years.

Of the four assets for sale in Queensland, the Bowe Hills property at 45 Folkestone Road is 3km from the Brisbane CBD and is being offered with the highest annual income – $1.7 million with the tenant covering outgoings and GST.

Featuring a total passing income of $7,400,000 per annum, all properties are being offered individually or in one-line, each with a 15-year lease.

At a glance:

• Australia’s largest educational investment portfolio to sell for more than $150 million
• Owners selling seven assets across Sydney, Melbourne and Brisbane
• Syndicates, high-net worth individuals and institutions are all expected to show strong interest

CBRE’s Sandro Peluso, Josh Twelftree, Jimmy Tat, Marcello Caspani-Muto, Aaron Arias, Toby Silk and Darren Collins have been appointed to market the properties.

Mr Peluso said the portfolio was expected to attract interest from a variety of buyer types, including syndicates and high-net worth individuals, as well as institutions that have traditionally focused on office or retail investments given demographic and lifestyle shifts, demand and a lack of supply.

“Due to the money market’s current returns and the scarcity of high-quality investment stock, we are expecting some funds which have not typically played within the educational sector to register interest in the portfolio,” Mr Peluso said.

“The premium nature of these centres, their demonstrated high levels of occupancy – 96.5 per cent across all centres - and proven track record, make these some of the best quality assets on the national investment market.”

The divestment follows Mr Wu and Ms Kuo’s sale of a portfolio of nine childcare investments for $63.2 million to Folkestone Education Trust, which has since been acquired by Charter Hall Education Trust.

Mr Wu of Little Lane Learning and Avenues Early Learning Centre said his company strategy was to acquire strategic sites where the demand for childcare supply outstripped supply.

The pair currently run and operate 17 centres across Australia, with another two centres opening by end of the year – bringing their total number of centres to 23, including the ones in the pipeline. 

Last month, Mr Wu and Ms Kuo spent $20 million on a Melbourne office at 90-96 Tram Road, Box Hill, with the site’s slated development to include a childcare centre in the commercial building.

Last year, the pair also acquired the heritage-listed Drummoyne Reservoir in Sydney’s inner-west from Sydney Water with the intention to fit it out as a multi-level childcare centre.

The properties to be sold are 239 Pittwater Road, Manly, NSW, 757 Station Street, Box Hill, and 555 Glenferrie Road, Hawthorn, Victoria, 45 Folkestone Road, Bowen Hills, 624-630 Old Cleveland Road, Camp Hill, 24 Southgate Avenue, Cannon Hill, and 488 Jacksons Road, Sunnybank Hills, Queensland.

Similar to this:

Primary school site for sale in Melbourne's east

Victoria's largest public medical offering in four years to go on sale

Barangaroo Avenue bar in Sydney for sale