A childcare centre operated by Little Stars, one of Melton’s most well-known childcare brands, has hit the market and its unique price point is expected to capture wide ranging interest from investors.

The property, at 8-10 Sherwin Court, is being sold sale via an Expressions of Interest campaign and is being marketed by CBRE’s Australian Healthcare and Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat who have transacted 11 childcare centres across Australia in 2024.

Mr Peluso said the property has a passing annual income of $355,000 per year, placing it in the sub $6,000,000 price bracket – which is increasingly rare in the early learning investment space.

Mr Peluso said, “Little Stars have a great reputation in the market and are known for offering high-quality care at affordable price points for parents. They have seven locations across Victoria and strong levels of occupancy throughout these centres,” 

“It’s extremely rare to see a childcare centre on the market for below $6,000,000 so we have several buyers with budgets between $4-$6million who have been unable to acquire investments in the sector who will be ready to snap this asset up.”

The property features a land area of 4,000sqm and the centre has had more than $100,000 worth of cosmetic upgrades completed in the past 10 months. The centre has a 10-year initial lease term with Little Stars until 2034 with multiple options. 

The centre is licensed for 100 places with an application in place to increase this to 131 places (subject to Department of Education and council approval).

Mr Tat added, “The centre has been maintained to a good standard and the tenant is consistently looking to make improvements at their cost. Just this week, the operator completed work for the opening of their new farm space – a key example of why their performance in the childcare sector has been so strong for a sustained period of time.

“Given the very low site coverage, the centre is uniquely positioned with oversized play space and surplus land. Our team have not sold a centre with so much additional land for more than five years. We expect this property to also appeal to international investors who appreciate a high level of freehold land as part of their investments.”

The Expressions of Interest campaign will close on Tuesday, 29th October.Related readings 

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Brighton East childcare centre investment for sale - CBRE  | Commo.

Frolic Early Learning secures Brunswick’s Hartnett House childcare centre - CBRE | Commo.

Charter Hall childcare centre’s $18.5 million sale sets the standard - CBRE | Commo.