Significant Wallaby Childcare Centre offered to market
One of Greater Melbourne’s best-performing childcare centres has been offered to market in what is shaping as another display of the asset class’ strength.
The Wallaby Childcare centre at Werribee in the city’s south-west offers a long-term lease to an experienced operator, plus options, in an established community still undergoing enormous growth.
Its listing comes amid continuing demand for childcare assets, with a centre in Epping also leased to Wallaby selling on a sub-6% capitalisation rate at Burgess Rawson’s Investment Portfolio Auction last month.
Burgess Rawson childcare specialist Adam Thomas said the property at 209 Black Forest Rd was occupied by one of the industry’s most “robust” businesses.
“There are a lot of childcare centres that have been built in recent years to keep up with the huge growth, so to have one with such a highly experienced operator with 90%-plus occupancy, it certainly gives you a level of comfort and security,” Mr Thomas said.
“Wallaby Childcare is a premium, private operator with a strong, established business that is highly regarded.”
Occupying a 2885sqm landholding, the 1003sqm comes with a 15-year net lease, plus two further 10-year options, along with fixed 3% annual rent increases and a location only 450 metres from Wyndham Vale Primary School. Just 500 metres away a new school – St Joseph’s Catholic Primary School – will open in January 2021.
It is licensed for 149 long day care places and currently returns $409,750 per annum, plus GST and outgoings.
Mr Thomas said the security of childcare has been proven time and time again.
“It’s an essential service and the Federal Government underpins the sector, as evidenced by the amount of support shown during the April-May period,” Mr Thomas says.
“With Melbourne now re-entering a Stage 3 lockdown, childcare gap payments are still being provided to the centres, even if a child doesn’t attend, further highlighting the sector’s stability.”
The centre is being sold through expressions of interest, which close at 3pm on Wednesday, August 12 unless sold prior.