hoffmans road childcare centre
CBRE says the pandemic shows the Federal Government is committed to childcare. Image Supplied
  • Leased by Guardian
  • Follows $6.57m Tarneit childcare centre purchase
  • CBRE Team responsible for 80 per cent of premium childcare sales in 2020

138 Hoffmans Road in Essendon, currently tenanted by the largest private early learning operator – Guardian Early Learning – has been purchased by Home Consortium for $8.6 million.

The acquisition is the second by the group following the purchase of another childcare centre at 80 Homebush Drive, Tarneit in November for $6.57 million.

The 804sqm Essendon facility has been operating since 2010 and recently renewed a 10-year lease with Guardian who is owned by Swiss private equity firm Partners Group.

CBRE’s Healthcare and Social Infrastructure team consisting of Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto facilitated the sales.

The team remarked that these sales reinforce the relative popularity of childcare centres with property funds and syndicates make them the most aggressive buyers in the $6 million-plus childcare price range.

“Traditionally these funds would rarely pay 6% for assets; however, it’s becoming the new norm for these groups to pay sub 6% – while it used to be the private investors that would out muscle property funds and syndicates, the tables have now turned,” Mr Twelftree said.

Mr Peluso added; “Now, more than ever, the importance of the childcare sector within the Australian economy is evident, with the sector contributing 0.7% to national CPI in September – by far the greatest contributor to the economy in this period. This figure is expected to jump even higher once October figures are revealed”.

Mr Peluso also said that as shown by the Federal Government’s ongoing investment into childcare, even during the pandemic, indicate it has an ongoing commitment to this sector.

“It highlights how important the childcare sector is to the Australian economy, with a number of studies even pushing for a further increase in sector support to help restart the economy,” he concluded.

CBRE’s Healthcare and Social Infrastructure Team were responsible for 80 per cent of the premium childcare – identified as $7 000 000 plus – investments in Australia.




You May Also Like

“Sydney setting the pace”: CBD office rents march higher

Cushman & Wakefield’s quarterly Office Marketbeat reveals 2.9% quarter-on-quarter uplift in Sydney

Canberra office market shows impressive resilience and growth

The market is underpinned by low vacancy, large developments in the pipeline and strong rental growth

Accenture and Lendlease to expand data insights platform

The platform which uses AI and virtual reality will be expanded to increase digital and in-store visits.

Demand for life science assets on the rise in Australia

Australians are getting older and this is contributing to the increase in demand for life science assets across Australia

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Perth property market: The definitive guide to buying a modular home

Modular homes, misunderstood as inferior, offer efficient, durable alternatives to traditional construction methods.

The 50 square metre solution getting people into their first homes and delivering an answer to ...

Small, modular homes could be a key part of the broader solution to Western Australia's current housing challenges.

The hardest time ever to buy a house in Australia: How Australian home buying got ...

We're currently in a buyer's market, but that doesn't mean Australian house prices are crashing.