Investors to vie for trophy childcare investment

Investors will have the chance to tap into the extraordinary momentum driving Australia’s childcare investment market when a brand new Melbourne childcare centre is auctioned next month.

The state-of-the-art and architecturally striking centre at Bulleen in the city’s east spans three storeys, offers one of the industry’s most accessible locations and comes to market amid unprecedented demand for the asset class.

Featuring a brand new 15-year net lease to award-winning national operator Kids Club, plus two further 10-year options to 2056, the property occupies a prominent 1933sqm main road site just 10km from the CBD.

Only 200m from the Eastern Freeway and Bulleen Road, the property will soon also benefit from the long-awaited North East Link, which will provide direct access to the M80 Ring Road via the same Eastern Freeway junction.

The centre at 56 Thompsons Road will be sold at Burgess Rawson’s Investment Portfolio Auction on Thursday, November 11.

Burgess Rawson Head of Agency and childcare specialist Adam Thomas, who is marketing the property with Natalie Couper and Zomart He, said the centre was one of the best to come to market in what had been another breakout year for the childcare sector.

“This is a truly premium, trophy childcare investment,”Mr Thomas said.

“It’s 10km from the CBD in one of the city’s most desirable residential areas, and includes fixed 3% rent increases and the opportunity to take advantage of significant depreciation benefits, given the new construction.”

The lease currently returns $590,500 per annum plus GST, with the tenant paying all outgoings, excluding land tax.

Mr Thomas said the “unwavering and continued” Federal and State Government financial support provided to the childcare industry throughout the COVID-19 pandemic had reinforced its appeal as one of Australia’s premier commercial property asset classes.

“Just last week there was an announcement about bringing forward further additional funding to ensure more families can continue to access childcare and keep working,” Mr Thomas said.

“On top of the billions of dollars already injected into the industry over the past two years, it again reinforces just how central and important childcare is to our economy.”

Burgess Rawson’s Investment Portfolio Auction will be held at 11.15am AEDT on Thursday, November 11.