How childcare and fast food sites became some of Melbourne’s most-sought after property sites in 2021

Billions of dollars have changed hands across Victoria’s commercial property sector in 2021.

Developers and investment groups are being joined by high-net-worth families in some eye-catching deals — with two key industries emerging hot property opportunities.

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A render of a childcare centre sold in Croydon - for herald sun real estate

A render of a childcare centre sold in Croydon as part of a $98m mega deal this year.

In the suburbs of Melbourne childcare proved one of the year’s biggest deal makers, with hundreds of millions of established, new and future early learning sites changing hands.

In one of 2021’s most remarkable deals — 12 childcare centres were sold for a combined $98m to a single buyer in October.

HomeCo, who are establishing real estate investment trust’s including one based on healthcare properties, funded the eye-watering sum, with a deal brokered by agents from Burgess Rawson, Savills and CBRE.

CBRE’s Sandro Peluso dubbed childcare centres “the new bank” after the sale.

At the other end of the spectrum, aged care sites were also in demand with New Zealand group Ryman Healthcare spending $35m in a single purchase to acquire a 6.07ha property at 27 Driscolls Rd, Kealba.

27 Driscolls Road, Kealba - for herald sun real estate

The green space at 27 Driscolls Road, Kealba, is expected to become an aged-care facility.

Colliers brokered the deal and said Ryman’s plan was to establish the site as a large retirement living project. The same buyer paid $30.08m for a 4.66ha property at 62 Jacksons Rd, Mulgrave, with a similar purpose in mind.

Ryman Healthcare also sold off a major site in Coburg, making $21m for the sale of 81A Bell St in an off-market deal.


1424 Dandenong Rd, Oakleigh - for herald sun real estate

A combination car dealership and burger restaurant at 1424 Dandenong Rd, Oakleigh, raised eyebrows and some serious bidding when it went under the hammer.

One of the other big trends in the suburbs this year was the demand for cars and convenience, and not just from punters.

Burgess Rawson’s regular auction showcases were at capacity throughout the year, with a combination car dealership and Hungry Jack’s in Oakleigh sold for $32.6m in October, the firm’s biggest Victorian auction result for 2021.

Fittingly the buyer was treated to a burger after the purchase.

But it wasn’t the biggest car dealership deal in Victoria this year, with luxury car sales bigwig Nick Theodossi involved in the $50m purchase of a Port Melbourne Subaru dealership.

There were hints the Prestige Cars boss might open a modest showroom from the site in the future, though he has run his business from North Melbourne for a significant amount of time.

Mr Theodossi partnered with developer Ross Pelligra for the off-market acquisition of 99 Lorimer St, Port Melbourne.

99 Lorimer St, Port Melbourne - for herald sun real estate

99 Lorimer St, Port Melbourne, sold in a high-priced off-market deal.

A hefty $2.268bn in Victorian retail investment properties were sold during the course of the year, one of the state’s strongest performances to date, according to JLL’s retail investment’s director Stuart Taylor.

$590m of this was covered by the sale of 18 neighbourhood shopping centres, which were the most in-demand segment of the market.

One of the larger payments was for the town centre of western suburbs development Woodlea, which was snapped up for $55.4m by the HomeCo Daily Needs real estate investment trust.

Colliers sold the 8500sq m of leasable space on behalf of Mirvac who are developing the estate as a joint venture with Victorian Investments and Properties.

But a $225m sale for Casey Central orchestrated by Colliers was the biggest the subregional shopping centre market has recorded in five years.

Supplied Editorial M&G is selling Casey Central to Haben and JY Group

The sale of Casey Central was one of the biggest of its type in half a decade.

The plaza hosts a Coles, Woolworths and Aldi as well as several other chain stores.

Lachlan MacGillivray, Colliers’ head of retail investment services estimated investors with a combined $2bn in capital were “aggressively pursuing retail centres” after the July sale.

Mr MacGillivray also helped broker a $97m deal for Watergardens Homeplace in Taylors Lakes’ Watergardens shopping centre in March. The 7ha property includes a Bunnings, Harvey Norman and eight other tenants.

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