Rare childcare opportunity at Altona Meadows

Published on: 14 October 2020

A well-established Melbourne childcare centre is presenting a uniquely affordable opportunity to invest in the sector within close proximity to the city.

The Altona Meadows centre at 1A Fitzpatrick Drive will be auctioned at Burgess Rawson’s Investment Portfolio Auction on October 28, hot on the heels of a number of strong results for the asset class.

Leased to experienced operator Baby Bells on a renewed 10-year lease to 2027 and with an additional 10-year option, the property occupies a prime 1,729sqm corner site opposite a McDonald’s, Red Rooster and just moments from both Point Cook Road and the Princes Freeway.

But it is the property’s price point that could draw the biggest crowd, which Burgess Rawson childcare specialist Natalie Couper said puts it in unique company.

“Very rarely do we see ‘affordable’ metropolitan childcare centres become available. This is an entry level childcare centre in metro Melbourne, which will be well received by investors,” Ms Couper said.

The purpose-built centre is licensed for 75 long day care places, returning $171,286 per annum plus GST and with the tenant paying all usual outgoings.

Ms Couper said childcare had continued to outperform most other investment types and asset classes throughout the COVID-19 pandemic as investors looked for stable and secure places to put their money.

“Since March, childcare assets have continued to transact consistently. Yield prices haven’t softened throughout this period, people are now focusing their attention on the strength and security of bricks and mortar investments,” she said.

Ms Couper also pointed to the ongoing financial support provided to childcare as a marker of its long-term security.

“The additional level of government support throughout the pandemic to both sides of the childcare sector – not just families but also the operator – is something we haven’t seen in any other sector, providing an extra level of security to the investor, knowing that the government is proactive in ensuring the ongoing health of the industry.”

Burgess Rawson’s Investment Portfolio Auction will be held at 11am AEDT on Wednesday, October 28.

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