CBRE’s Australian Healthcare and Social Infrastructure team have continued where they left off after 2023, with the listing of a national childcare portfolio across Western Australia, South Australia and Victoria.
The portfolio comprises four trophy early learning investments and is being offered to the market by KM Funds Management (Previously Korda Mentha). The assets, which sit within KM Funds community and social infrastructure fund, are all modern and near-new with a portfolio WALE of 17.6* years. The properties will be marketed by Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat on a national platform with CBRE local offices, including Harry Einerson and Rhyce Scott in South Australia and Chloe Mason in Western Australia.
Marcello Caspani-Muto said, “These really are likely to be the last in a wave of new high-quality childcare investment for a period of time. Our team have been touting the rapid decline in new development pipelines across the sector for over a year now. In most cases, the development of new metropolitan centres is not feasible, even with the positive rental growth we have seen across the sector. There really is a notable buy-side opportunity as we expect limited supply in the coming 12-24 months to, once again, compress cap rates across the space and some of the returns being achieved are likely not to be seen again. And this is before we factor in the forecast rate cuts over the coming 12 months.”
Sandro Peluso added, “All centres within the portfolio were selected with a strategic and research-driven process to establish them for long-term success. Demand ratios are strong across the board and strong barriers to entry for competition via either planning or underlying land costs will limit future competing development. The lease terms on offer are also amongst the most favourable in the market, with buyers having demonstrated an affinity for Nido Leases centres due to their triple net structure.”
The portfolio offers a combined net income of $1,535,684 and is being offered individually or in one line via an Expressions of Interest campaign closing on February 15th 2024.