Tarneit childcare sells for $5.45 million
A Sydney investor paid $5.45 million for a childcare centre in Melbourne’s burgeoning west this week.
The three year old complex at 28-34 Marengo Road, Tarneit, returns annual rent of $316,087 (ex GST and outgoings).
On that basis it is trading on a 5.8 per cent yield.
Occupant Sparrow Learning will pay yearly four per cent increases.
In 2032 it will have the option to exercise the first of its two 10-year renewal options. Then, rent will be adjusted to the market rate.
At the south west corner of Derrimut Road, the 950 sqm purpose built centre is licensed for 120 places.
It occupies a 2,772 sqm block adjacent to Tarneit Central Shopping Centre, which contains ALDI, Coles, Woolworths and more than 40 specialty stores.
Tarneit is about 25 kilometres from the Melbourne CBD.
Burgess Rawson’s Adam Thomas and Natalie Couper marketed 28-34 Marengo Road.
Last month the sam agency sold another childcare investment in the suburb, Sayers Road, for $5 million on a 6.1 per cent yield.
Marc Pallisco, realestatesource.com.au