A Melbourne-based investment fund, has purchased an Avondale Heights childcare centre for circa $8 million amid increased investor demand for childcare assets.

Located at 5-7 Clarendon Street, the 1,414sqm purpose-built childcare centre has an annual income of $428,400 and a new 20-year lease to Nido Early Learning, one of the country’s top-tier early learning providers.

CBRE’s Healthcare and Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat brokered the deal and are now managing the sale of the nearby Avondale Heights Childcare Centre at 63-67 Canning Street, Moonee Valley on behalf of private developer Nescon.

That asset is expected to sell for circa $10 million.

The 2,028sqm childcare centre is tenanted by Avondale Heights Child Learning who recently signed a new 20-year lease at a passing rental of $596,711 per annum.

“There is a clear appetite for investment in the area and with numerous underbidders missing out on the Clarendon Street transaction, we are expecting interest in Canning Street to be high,” Mr Peluso said.

“Avondale Heights Child Learning has been successfully running since 2009, a testament to their operational strength and the scarcity of both existing and forthcoming competing centres in the catchment.”

Mr Caspani-Muto added, “Prior to construction, the property was earmarked for a residential apartment project and with the growth in high-density offerings across the neighbouring Maidstone and Moonee Ponds areas and the site’s elevated views, it’s not hard to see this being highly attractive in 20- or 30-years’ time.”

63-67 Canning Street is for sale via an Expression of Interest campaign, closing 5 September 2023.  

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