The Wallaby Childcare Centre in Epping hits the market
One of Melbourne’s best-performing childcare centres has hit the market at a time when the industry’s strength continues to grow off the back of increased government support.
The Wallaby Childcare Centre at Epping in the city’s north will be auctioned at Burgess Rawson’s Portfolio Auction on Wednesday, June 24, in the agency’s first event as restrictions on gatherings begin to lift.
The property at 2 Shimmer Street has 150 places and consistently runs at more than 90% occupancy, marking it as one of the city’s strongest-trading centres.
Developed by long-established operator Wallaby Childcare, the centre will be leased back to the company on a new 15-year net agreement, with two additional 10-year options and fixed 3% annual rent increases.
Burgess Rawson childcare specialist Natalie Couper said the property was also one of the best-located she had seen.
“If you ask any childcare operator where they want to be, they’ll say, ‘next door to a primary school’, and this property is directly opposite St Mary McKillop Primary School, with more than 500 students,” Ms Couper said.
“It’s very close to three major shopping centres and supermarkets in Coles Aurora, Epping North and Pacific Epping. From a location perspective it doesn’t get any better than this.”
Returning $417,575 per annum plus GST, the centre occupies a large 2979sqm corner site on a main road and has triple street frontage.
Ms Couper said the strength of the tenancy was further bolstered by the increase in government funding for the childcare industry in the wake of COVID-19.
“No other investment class or sector has received the same level of support from a state or federal level that childcare has, and will continue to,” she said.
“Childcare is critical to the Australian economy and is the only commercial property investment class to see sector-specific funding during this period, further enhancing its investment credentials.”
Burgess Rawson’s 137th Investment Portfolio Auction will be held in Crown Casino’s River Room from 10.30am on Wednesday, June 24. In-room attendance will be restricted to 50 pre-registered bidders, with online and external bidding facilities available to other buyers.