A mixed-use asset anchored by a childcare centre in Doreen has fetched $15 million, representing Australia’s largest childcare centre sale for 2018.

Savills Australia’s Clinton Baxter, Jesse Radisich and Benson Zhou brokered the deal for the 2,780sq m property at the corner of Painted Hills Road and Hazel Glen Drive on a tight yield of 5.8 percent.

Mr Baxter said the expressions-of-interest campaign generated healthy competition among investors, attracting more than 135 registered parties.

“The sale of this landmark retail and childcare asset demonstrates the strong market appetite for premium property generating solid income in growth locations,” he said.

The three-level, state-of-the-art building includes early learning centre, Guardian Childcare, seven ground-level retail shops and undercover parking for 66 cars.

Guardian Childcare is one of Australia’s leading national childcare operators, and its Doreen facility encompasses seven rooms and two outdoor play areas on the building’s upper level.

“Buyers were attracted to the brand new asset, completed in early 2018, underpinned by a large, fully enrolled Guardian Childcare centre and in one of Melbourne’s primary growth corridors,” Mr Baxter said.

The complex generates a net rental total of $871,324 per annum and is fully leased to a mixed of high quality tenants aside from Guardian Childcare, including Fletchers Real Estate and 12 Round Fitness, all with long-term leases in place and fixed annual rental growth.

Located in the heart of a rapidly developing residential area, Doreen is forecast to experience a surge in population growth throughout the next two decades.

”The recent opening of the Mernda rail extension and extensive housing estate developments has provided a huge boost to the local area, providing investors with the opportunity to capitalise on one of Melbourne’s growth hot spots,” Mr Baxter said.

“The property was purchased by a Singaporean investor with a local partner, demonstrating that off-shore money continues to flow into the Melbourne market in abundance,” Mr Radisich said.

Learn more about Savills Metropolitan and Regional Sales.