img

Property Sales

Improving sentiment sparks the largest public child care sale in Australia for 2020

img

The Agosta family has divested its Footscray Nino Early Learning Adventures Centre for $11.5 million in a move representing Australia’s first childcare centre sale to top $10 million this year. Located at 282-288 Geelong Road, the multi-level state of the art facility is the newest centre under the Nino Early Learning Adventures brand, having been completed in the past month. The property comprises a building area of 2,228sqm and includes basement car parking for 25 vehicles. CBRE’s Australian Healthcare and Social Infrastructure team of Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto negotiated the sale on behalf the Agosta family via Expressions of Interest. It is the 11th Nino Early Learning Adventures centre sold by CBRE over the past three years, amassing to a total transactional value of more than $150 million.   CBRE’s Josh Twelftree said the sale is the second major, child care investment transacted in 2020 across Australia with the first being only 2 weeks ago in Oakleigh East, Victoria by the team for $8.08 million (5.4%). These results are the catalyst for buyers flocking to the sector as during these uncertain times child care, the essential service investment, continues to sell and new buyers are attracted to the activity in the sector. This buyer behavior is described as Herd Mentality which describes a behavior in which people act the same way or adopt similar behaviors as the people around them”. Mr Twelftree said. “Investors have made clear their intentions to focus on properties with sound fundamentals and we are already experiencing a ‘flight to quality’ where well-located assets with reliable income streams and long leases are keenly sought. Child Care investments with strong underlying land value are on the top of the investors wish list as it gives them confidence that due to the higher cost of entry into these areas, it is less likely a competitor will open a centre in close vicinity. An investment that has the land value attributing to 30%+ of the overall purchase price, constitutes a good investment we our told by our national buyers” CBRE’s Jimmy Tat said growing investor interest in childcare centres was being driven by their relative stability as an asset class. “When the commercial market was at its weakest earlier this year, investors shifted their focus to stable investment opportunities - such as child care centres - that provide essential services. The Federal Government’s support of childcare services further reinforced this,” Mr Tat said. “Investors typically rate tenancy profile as the top priority after location – primarily to ensure the investment provides a strong income guarantee. Nino Early Learning Adventures is a well-known reputable operator with a foothold in sought after investment locations. This is underpinning greater demand and interest in their assets – as evidenced by the recent transaction activity. CBRE are the premium child care sales specialists, having handled all but one of the 9 sales in the price point of $8,000,000 + across Australia in the last 24 months (89% market share)

Press Release
CBRE Melbourne

img
img
© 2021 · Property Weekly Privacy Policy