The landmark site at 64-66 Stubbs Street, Kensington, is well-known for its red brick finish, the only one in the area, and benefits from dual street frontages. 

The former office building-turned-childcare centre has a land area of 824 square metres and a building area of 1,451 square metres and features a passing income of $450,800.

Located in a State Government renewal precinct, it is zoned Mixed Use allowing for development of up to eight storeys.

The centre’s building is classified by the state government as historically significant for demonstrating the historical and social development of the Kensington area.

At a glance:

• Listing of Birdport Property’s premium childcare centre adds to buoyant market return of premium childcare assets
• The property at 64-66 Stubbs Street, Kensington, has a land area of 824 square metres and a building area of 1,451 square metres
• It comes with a passing income of $450,800 and is located in a Mixed Use zone allowing for development of up to eight levels

CBRE’s Healthcare and Social Infrastructure team – Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto - has been appointed to market the property for sale.

Sandro Peluso said the investment would be hotly contested with significant local and offshore enquiry expected given the site’s proximity to the CBD and high land values. 

“With the median house price at circa $1 million, the area is a hotspot for property investors,” Peluso said. 

“The landmark nature of this site is expected to drive additional demand, on top of the already appealing investment features expected from a childcare listing.”  

Limited blue-chip offerings have come to market in 2019 and, excluding the current portfolio of centres, the last premium transaction was 97 Tope Street, South Melbourne, which transacted in early March.

The CBRE team recently launched a national education portfolio, worth circa $150 million on behalf of nationally renowned developer and operator Mike Wu. 

Mr Twelftree said that the combination of that portfolio and the Stubbs Street opportunity represented a buoyant market return for premium childcare assets after a subdued supply period over the course of 2019.

“In addition to the site’s historical significance it has proximity to many globally renowned destinations including the Melbourne Zoo and Flemington Racecourse,” he said.

“Additionally, significant levels of planned urban renewal are anticipated to enhance the locational demand.”

Located in the state government’s Arden Urban Renewal Precinct, an area slated to become a global knowledge hub and central city destination, Kensington is expected to act as a base for 34,000 jobs by 2051.

The precinct has been rezoned to cater for population growth and will create a sustainable living and working environment featuring cycle paths, green spaces and a newly constructed train station, Arden Central.  

The property at 64 – 66 Stubbs Street will be made available to the market via a public, onsite Auction on November 21, 2019.

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