A new childcare centre is expected to open in Brisbane’s inner southwest following the recent sale of a prominent main road site in Graceville.

The 1,432sq m property at 232 Oxley Road is currently occupied by a circa 330sq m building housing a medical centre, but if a development application for a Kids Club childcare centre which has been lodged by the buyer is approved the existing building will be demolished.

The $2.6 million sale of the corner site, which has street frontage of 37 metres to both Oxley Road and Graceville Road, recently settled.

Christian Sandstrom of Knight Frank represented the purchaser, Shane Mundey of Raw Property Studio Services Pty Ltd, introducing him to the vendor, who had operated from the medical facility on the site for decades.

The purchase is the second acquisition in as many months for Raw Property Studio Services Pty Ltd which is currently delivering a pipeline of childcare centres across key South East Queensland locations and interstate.

Raw Property Studio Services Pty Ltd also recently bought a 2,500sq m site at 645 Seventeen Mile Rocks in Sinnamon Park, with the secured tenant, Oxanda Education, set to open a 100-place childcare centre on the property, and incorporate an existing heritage-listed farm house.

That property, which is currently being redeveloped, will now be placed back on the market, with price expectations in excess of $8 million.

Raw Property Studio Services Pty Ltd is now looking to complete further acquisitions and is actively seeking new projects to settle and complete this year.

A childcare centre development application for the Graceville site was lodged in March last year and development approvals are expected by March this year, with construction of the centre expected to be finalised by the end of 2022.

The application is for a 106-place childcare centre to be run by tenant Kids Club, a national childcare operator with more than 30 centres already operating around Australia.

The tenant has already signed up to an initial lease term of 15 years, with options for a further two 10- year terms, at a premium rate to reflect the tightly held real estate market within Graceville.

The three-storey childcare centre will have seven activity rooms and two outdoor play areas, as well as 22 car spaces. It would operate from 6.30am to 6.30pm, Monday to Friday.

Mr Sandstrom said the buyer had been looking for suitable childcare sites throughout South East Queensland, and the Graceville site ticked all the boxes.

“It is an expansive, high-exposure corner site in an affluent inner-city suburb ripe for redevelopment,” he said.

“The site is strategically positioned at the intersection of Graceville Avenue and Oxley Road, the latter of which serves as a central thoroughfare in the area, connecting Brisbane’s southwest through to the CBD.

“The childcare centre will cater to a gap in this suburb for this type of amenity, given the lack of existing centres and associated vacancies.

“Development sites continue to be one of the most sought-after investment types for buyers at the moment, and childcare centres are very sought after, with high demand for brand new centres in particular in South East Queensland amongst tight market conditions.”

Director of Raw Property Studio Services Shane Mundey said the childcare development would be sensitive to the residential homes surrounding the Graceville site and provide significant infrastructure for the local community.

“The building will be designed to integrate into the urban fabric of Graceville and cater for the immediate local demand for childcare in the greater Graceville area,” he said.

“The site’s location provides a unique opportunity to redevelop the property in a very tightly-held, competitive real estate market.”

To request a sales analysis please contact the selling agent Christian Sandstrom of Knight Frank via the contact details below.