Investor interest in early learning assets continues to be strong, with CBRE’s Australian Healthcare & Social Infrastructure team securing the sale of five childcare centres in six weeks.

The team, who have worked together for 10 years, includes Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto.

Mr Peluso said the combined $38 million transaction volume was the strongest start to the year the team has had across all asset classes in recent years.

Located in WA, regional Victoria, and Melbourne, the centres were sold between February and mid-March.

Mr Peluso noted the sale of a five-year-old childcare centre leased to Guardian in Murray Street, Preston which transacted at a circa 5.5% cap, one of the sharpest outcomes seen in Victoria for a sub $10m asset in the past 12 months. At the other end of the spectrum, a recently renovated 100+ year old building in Melbourne’s Brunswick transacted at a similar cap rate despite having heritage overlay.

 “While there is no question market headwinds have been present for well over 12 months across all sectors, we continue to see ample capital willing to transact on investment and value add opportunities,” Mr Peluso said.

“In these market conditions, it’s more important than ever that agents spend time to educate clients as a trusted advisor. A greater level of buyer knowledge and time commitment is certainly required, but when asset and product knowledge is present, great outcomes can be achieved,” he added. 

The 2025 sales continue a strong conclusion to 2024 with the team holding a strong position in the market with childcare centre sales across Australia while holding an 80% market share within Victoria. 

Mr Caspani-Muto added, “This is the strongest start our team has seen in more than eight years and we expect this momentum will continue with minimal deviation. Buyer sentiment is beginning to turn a corner and the inspection to offer submission ratio is increasing. While things may only gradually improve over a long period of time there is a clear willingness to transact and appetite for social infrastructure assets from private and syndicated capital this year. This could lead to a notable bounce back in volumes as we enter Q3 and Q4.”

CBRE’s Australian Healthcare & Social Infrastructure team’s childcare centre transactions for Q1 are:

• 391 Murray Road, Preston VIC, sold for $9 million
• 63-65 Canning Street, Avondale Heights VIC, sold for 9.2 million
• 123 Albion Street, Brunswick VIC, sold for $7.9 million
• 56 Carrington Street, Palmyra WA, sold for $6.05 million
• 110 Panton Street, Golden Square VIC, sold for $6.5 million