Stonebridge has announced the recent sale of a portfolio of three Victorian childcare centres totalling over $35 million, offered as part of their recent October National Portfolio. 

Headlining the results is the sale of a brand new Heathmont facility at 203-205 Canterbury Road.  After receiving 5 first round Expressions of Interest offers, the property sold for $12,016,668 on a  5.83% yield. The 139-place childcare centre is set across a 2,973 sqm* site and carries a lease  to national operator, Grow Early Education, through to 2043 plus options. 

Commenting on the sale, Stonebridge Asia Practice Partner Kevin Tong said, “The property was  ultimately sold to an offshore Chinese investor who is a first-time childcare buyer. We continue to  see an ongoing shift from Asian capital towards childcare assets, particularly those occupying  large metropolitan landholdings. We have now seen four of the last six Victorian Stonebridge  Childcare centres sell to Asian investors.” 

In Doncaster, an Imagine Childcare sold for $15.5 million in one of the largest Victorian childcare  transactions for 2024. The 158-place childcare centre is located on a high profile 1,968 sqm site  with a lease in place to the Imagine until 2037 plus options. Given the larger price point, the  asset drew interest from a different buyer profile than traditional childcare investors with the  purchaser being a private family based out of NSW. The sale realised a yield of 6.05%. 

Rounding out the portfolio, an established facility at 5-7 Clarendon Street, Avondale Heights leased to Nido Early School has transacted for $8,000,000 at 5.79%. The property was sold to a  locally based private investor who was attracted the national covenant and strong suburban  metropolitan Melbourne location. 

Rorey James noted of the sales, “To transact a combined $35.52 million across the three  properties highlights the increasing market confidence we are seeing as we head towards 2025.  Investors continue to acknowledge the buoyancy of the childcare sector, bolstered by unwavering  government support for the sector and appreciation for long term leased assets with strong fixed  rental growth.” 

These sales are the latest in a series of successful childcare transactions by Stonebridge Property Group. These include the recent off-market sales of an Early Explorers Learning in Frankston  North and Nido Early School in Seaford on behalf of HealthCo, which sold for prices of $7.5  million and $6.5 million, respectively. 

Stonebridge Agents, Rorey James and Kevin Tong negotiated the above sales. 

Related Readings 

Offshore Asian Investor Secures Childcare Centre Amidst $50 million of Childcare Sales | Commo.

Stonebridge October National portfolio generates over $100 million in sales | Commo.

Stonebridge’s August Portfolio unveils multiple trophy investments | Commo.