Sector Property Group sells $7.1million Mitcham Childcare Centre off the plan.
Content taken from article by Marc Pallisco, 29 Aug 2019, Real Estate Source - https://www.realestatesource.com.au/sector-property-group-sells-7-1-million-mitcham-child-care-centre-off-the-plan.html
EXCLUSIVE: Sector Property Group has sold a purpose-built childcare investment in Melbourne’s east off the plan.
The 138-place complex under construction at 14-16 Simla Street, Mitcham, traded for $7.1 million to a Chinese investor – a deal which will represent a commencing yield of 7.6 per cent.
Sector offered the property with a 15-year lease in place to Gloryland Childcare and Kindergarten, whose directors have more than 35 years early learning business experience, in Australia and Singapore. Gloryland has two 10-year renewal options as part of its lease.
The occupier will also pay all outgoings including repairs and maintenance and building insurance, but not land tax. Savills director Jesse Radisich, who represented Sector with Mark Stafford and Benson Zhou, said Mitcham is an under-supplied childcare market with only 290 places and very little vacancy within the immediate area.
The property is located within the City of Whitehorse, which the broker describes as one of Melbourne’s most highly sought after eastern suburb locations. The strata titled Mitcham child care centre forms part of a mixed-use development also set to include The Base self-storage facility.
Sector Property Group is one of Australia’s largest self-storage and small warehouse providers.
Sector Property Group is one of Australia’s largest self-storage and small warehouse providers.In May, we reported the developer acquired a fifth metropolitan Melbourne site, in Ringwood, to make way for a The Base mixed-use, self-storage based development.
Childcare centres on the radar of investors
The Mitcham deal comes two weeks after we reported about another off-the-plan childcare investment sale, in Dandenong South.
In that case, an interstate investor paid $6.4 million for 11 Assembly Drive, which will be leased to Kool Kidz for 15 years after construction is complete. Four months ago, we reported that local developer Melinda Cohen offloaded a swank three-level childcare centre at 97 Tope Street, South Melbourne, for $10.25 million. The fit-out of this centre is reported to have cost about $6.3 million.
In March, we reported that a China-based investor paid acquired a Pakenham childcare centre in Melbourne’s south east for $5.02 million. The purchaser settled on the deal in six days. Also in March, we reported that Charter Hall paid $75.5 million for a portfolio of 13 childcare centres on Australia’s east coast – some on a funds-through basis.