Pakenham early learning centre a coveted investment

Published on: 28 August 2020

A premium Melbourne childcare centre that ticks every box for investment will be the latest offered to the market, with demand for the asset class showing no sign of slowing.

Leased to G8 Education, Australia’s largest ASX-listed early education provider, the Pakenham property is positioned alongside a major shopping centre, surrounded by local schools and located at the centre of one of the country’s most prolific growth corridors.

The centre at 7 Village Way is directly opposite the Woolworths-anchored Lakeside Square Shopping Centre, just 200m from Cardinia Road Train Station, moments from the Princes Highway and services a residential catchment with thousands of new and future homes.

Leased to G8 on a secure 10-year net lease to 2023 with a further four five-year options, the purpose-built facility is approved for 120 long day car places and returns $262,544 per annum plus GST and outgoings, with 3.5% fixed annual rent increases and ratchet provisions at the commencement of each further term, ensuring rental growth.

It will be auctioned at Burgess Rawson’s Investment Portfolio Auction on Wednesday, September 23.

Burgess Rawson childcare specialist Natalie Couper said the property’s access to schools – considered the lifeblood of childcare centres – was second to none.

“It’s positioned in a very significant educational precinct, with 15 schools within a 3km radius of the property,” Ms Couper said.

“The Casey-Cardinia region is in the top 10 fastest growing local government areas in Australia. There are an enormous number of young families moving to suburbs such as Pakenham, underpinning significant demand for local childcare centres.”

The auction comes following new levels of Federal Government support for Victoria’s childcare industry, which has seen funding to allow parents to continue paying childcare fees while remaining at home under COVID-19 conditions.

“Childcare is deemed an essential service and has proven incredibly resilient as an asset class during what has been a very challenging time for Victoria,” Ms Couper said.

“At Burgess Rawson we have transacted 19 childcare facilities since March, demonstrating the level of investor interest that has remained in the market, and how highly sought after these assets are.”

Burgess Rawson’s Investment Portfolio Auction will be held at 11am AEST on Wednesday, September 23.

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