Just months after the largest ever childcare investment sale in Victorian history, CBRE’s Australian Healthcare & Social Infrastructure team are poised to launch a trophy Brighton early learning investment to market.

Read more about the $20,500,000 Armadale childcare transaction - https://www.cbre.com.au/press-releases/childcare-centre-transaction-makes-history

The listing of the Brighton childcare centre coincides with that of 1 Lauer Street, Doncaster which CBRE have also recently launched to market with both assets likely to attract pricing exceeding $17,000,000.

Located on one of Brighton’s most esteemed streets, 46 Dendy Street, Brighton is leased to ASX listed G8 Education and trades under their flagship banner The Learning Sanctuary. The property is expected to be formally launched for sale in early January with an Expressions of Interest close on Thursday February 15.

The property which is being marketed by Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto features annual income of $1,011,998 and annual increases of CPI + 1% which are uncapped. The centre is licensed for 171 Long Day Care Places, making it one of the largest in Victoria. The property also features basement parking for 37 cars and a substantial underlying land area of close to 1,900sqm*.

Sandro Peluso said “In a broader investment market and economy which is undeniably experiencing it’s challenges the presentation of two trophy assets the likes of Armadale and Brighton are a testament to the resilience and on-going investment appetite toward childcare real estate. 46 Dendy Street is unquestionably one of the highest quality early learning investment offerings in the country and our team are expecting interest from a range of high-net-worth private investors along with syndicates and traditional institutional buyers. Doncaster Road has a distinguished history amongst commercial investors, and we expect this to be a substantial driver of engagement.”

Jimmy Tat added “The underlying land value of an investment at this magnitude cannot be understated, particularly given the freehold nature of its title, traditional lot shape and lack of encumbrances. Combine this with it’s near new improvements and the opportunity satisfies all the requirements we are given from our Asian investor buyers (both private and syndicates). The improvements are some of the highest quality you will see for any childcare centre across the country with oversized foyer / learning spaces and hallways throughout. Couple all these attributes with uncapped CPI + 1% increases and an ASX listed tenant, every investment fundamental is covered.”

Marcello Caspani-Muto added “We continue to see investors overlooking short term headwinds in relation to interest rates with many holding the view there is a significant buying opportunity over the course of 2023. This appetite has been pronounced in trophy suburbs like Doncaster and Armadale. We know the future development pipeline has declined significantly in the childcare market from both a data and first hand leasing perspective. As too much capital continues chasing too few opportunities from 2024 and beyond our team believe there will be substantial yield compression ahead, even further future rate cuts.”

Related Reading:

National Childcare Portfolio Poised To Start 2024 With A Bang

Generational Doncaster Childcare Centre investment for sale in thriving Eastern Melbourne - CBRE 

Mildura childcare development leased to Country Bunch Early Learning by CBRE 

Vacant aged home care facility sold to offshore investor - CBRE