Rooftop playground helps Elsternwick childcare to boom price
A Melbourne childcare centre with a rooftop playground has become the most expensive Victorian childcare centre sold in 2018, after fetching a whopping $11.3 million.
The prominent 2186sqm site at 31 Nepean Highway in Elsternwick, was snapped up by a Chinese investor this month, for a price well above the previous $9.5 million record.
The 128-space facility is still under construction but is set to be occupied by well-known childcare operator Nino Early Learning under a long-term lease, which helped push up the final price tag, according to CBRE agent Josh Twelftree.
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“Investors have continued to hold the Nino covenant in high regard, with the operators now featuring 18 centres nationwide either in operation or the development pipeline, on 20 year lease with the option to extend,” he says.
“With Elsternwick’s median value growth equating to 60% in the past three years the property’s strong underlying land value was an additional factor attracting a number of seasoned investors.”
Located in a prestigious suburb the development has several heritage requirements, so the inner-city facility will retain historic features from the old residence.
This includes the classic Victorian façade, which connects to the modern facility, complete with an 283sqm rooftop play area.
Set to open its door next year, the property was initially listed for $10 million but garnered strong attention from the market.
Interest from several foreign buyers signals ongoing confidence in premium commercial real estate in Victoria, according to agents.
The previous childcare record was held by a newly built 139-space facility at 1066 Centre Rd in Oakleigh, which has been leased to the Early Learning Centre until 2042.
Both sales come as a 2018 report released by CBRE reveals childcare properties are one of the fastest growing asset classes in Australian commercial real estate.
Elsternwick is one of Melbourne’s top 15 most sought-after suburbs and is located within 11km of the CBD.