Melbourne City Mission (MCM) will no longer provide childcare services following the successful leasing and business transfer of Hartnett House to Frolic Early Learning.

Located at 123 Albion Street Brunswick, the centre was leased to private provider Frolic Early Learning for $516,600 annum on a 15-year initial lease term with further options.

CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat were appointed to run the leasing and business transfer campaign on behalf of MCM. 

Mr Caspani-Muto said, “This leasing transaction was not a typical vacant or off-the-plan offering with the transfer of existing business operations, inclusive of staff liability and enrolled families as part of the agreement.

“Tenant selection required a strategic and detailed approach from both Melbourne City Mission and CBRE, with a focus on quality of care, industry experience and the incoming tenant’s ability to transition the service smoothly for existing families.”

 Mr Peluso added, “The incoming tenant’s planned renovation and building works were factored into the selection process, considering how these would improve the current offering for families and ensure the longevity of the centre. The end outcome still reflects a highly competitive rental, which exceeds $4,000 per place.

"We continue to see the average rental rates for childcare centres achieved in Victoria climb due to reduced development pipeline opportunities and rising daily fee rates. Rentals between $4,000 - $5,500 per place are seen as the average based on centre location, with Victoria almost completely aligned with NSW.”

Frolic Early Learning has two existing childcare services with plans for further expansion. The transition of the service at Brunswick will take place over the coming months with planned building renovations set for completion by the start of 2025.

MCM previously operated two Early Learning Centers (ELCs), which have now both been transferred to other operators. This shift is part of an adjustment of the wider service offering to focus on supporting children, young people and adults experiencing disadvantage. 

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