- 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.