Childcare centres are firmly on the radar of off-shore investors following the sale of a Camberwell childcare centre for $6.82 million.
The property drew more than 100 enquiries with 70 per cent of formal expressions of interest coming from foreign buyers.
The purchaser, a China based investor, paid more than $400,000 over the reserve - on a 5.05 per cent yield, the firmest yield yet recorded in the price range. The sale follows a similar result late last year when a China based investor paid $2.3 million on a 5.1 per cent yield for a childcare centre at Rowville.
Head of Savills Childcare Investments team, Julian Heatherich, who brokered the 164-168 Warrigal Road deal with James Lockwood, said childcare centres were now flavour of the month.
"Childcare has really come of age as an asset class in its own right and this sale presents unequivocal evidence," he said.
"We currently have more interest for child care investment than any other asset class. The property drew well over 100 enquiries with seven out of 10 formal offers coming from off-shore."Located directly opposite Wattle Park Primary School, the modern, purpose-built centre comprises a 547 square metre floor area and 24 car spaces on a 2065 square metre site with three street frontages. It was sold subject to a 10 x 10 year lease to national operator, Affinity Educational Group, at an annual net rental of $344,986.
