A childcare centre in Cheltenham has hit the market, offering investors the rare opportunity to acquire an asset secured by a 35-year initial lease term.
CBRE’s Australian Healthcare and Social Infrastructure team of Marcello Caspani-Muto, Sandro Peluso and Jimmy Tat are managing the sale of the property via an Expressions of Interest campaign.
Located at 1A Bernard Street, the property is leased to ASX-listed childcare provider Mayfield Childcare which has 45 locations across Australia.
The asset has an annual income of $609,993 + GST and a 35-year initial lease term to 2055 with further option.
The tenant pays all outgoings including maintenance, CAPEX, management fees and land tax on a multi-holding basis.
Mr Caspani-Muto said, “There is no question this is the best lease we’ve seen offered to the public investor market in our 10+ years as a team. An initial lease term of 35 years is almost double the longest initial leases usually see in market.
This is a truly hands off holding with notable street exposure and access from three street frontages, so the long-term land value and alternative use projects are significant.”
Mr Tat added, “An ASX-listed tenant is one thing, but international buyers will be drawn to this asset given the outgoing recoveries.
If the purchaser is a foreign owner, they can recover additional holding costs, so this is an incredible opportunity for investors.”
The recently renovated 800sqm building is situated on a close to 2,500sqm* corner holding with three street frontages across Chesterville Road, Clendon Court and Bernard Street.
The property is licensed for 120 children with the renovation all-encompassing from new paint and
flooring to outdoor areas and bathrooms. The Expressions of Interest campaign closes in the first week of May.
For more information, contact Marcello Caspani-Muto, Sandro Peluso and Jimmy Tat.
