Commercial property enthusiasts are expected to swoon when an entire block of apartments in a prime Prahran position go under the hammer on Thursday, 13th December.
According to selling agents, Beller Commercial, this is a rare opportunity due to its prime inner-city position and genuine potential to add value.
“This incredible block of eight apartments is an alluring package for the enterprising investor, builder or developer, currently returning a combined rental income of $137,112 per annum,’’ a Beller Commercial spokesperson said. “To be sold as one, each apartment presents excellent scope for contemporary enhancement, featuring spacious living/dining room, separate kitchen and bedroom/s with built-in robes.”
According to Beller Commercial, the location here simply cannot be overstated.
“Proximity to multiple tram routes and High St shops, cafés and restaurants confirm the lifestyle credentials of a position popular with buyers and renters alike,” the spokesperson added.
The property will be auctioned on site from 12.30pm.
Child care centre operators are beginning to feel the benefits of the Federal Government’s recently introduced $3.5 billion Child Care Subsidy package, spurring confidence from investors looking for quality, well located assets.
Fitzroys agents Chris Kombi and Terence Yeh have just sold the St Helena Early Learning Centre in Melbourne’s north-east growth corridor suburb of Greensborough for a strong $7.26 million, at a 5.95% yield.
The prominent 4,224 sqm site at 189 St Helena Road has a 1,001 sqm purpose-built facility and is licensed for 120 places. Current return is $432,000 per annum plus GST on a new 15- year lease, with three further terms of five years and fixed 3% annual increases.
“Amid reporting about a general oversupply of centres, demand from investors in some metropolitan areas remains strong, especially for new state-of-the-art centre such as this, which include large, valuable underlying land holdings,” Kombi said.
Greensborough has seen median land values increase by some 36% over the past five years, according to PDOL.
Kombi said the tenant, Childcare Opportunities, which trades as St Helena Early Learning, has spent more than a decade in the construction and operation of childcare centres.
“The property’s build and selected location reflected their experience in the industry, and investors took note of this in big numbers.”
Publicly listed operators have declared in recent weeks that industry concerns of an oversupplied market have passed, and revenues, occupancy rates and “days sold” have been increasing as the sector begins to absorb the benefits of the Child Care Subsidy following a transition period after its introduction in July.
The Subsidy quickly took child care costs from long-term highs to historic lows.
Yeh said the 189 St Helena Road site is strategically located close to a number of primary schools within one and two kilometres, a factor typically associated with strong demand for childcare services.
“As is the case for most of Greensborough, 189 St Helena Road is bordered by multiple residential dwellings, providing that immediate demand for childcare and educational facilities.
"The area is further enhanced by major shopping centre, Greensborough Plaza, the Metropolitan Ring Road and also set to benefit from the North East Link project.” he added.
Bought buy a local investor, the expressions of interest campaign was run in conjunction with Sandro Peluso and Jimmy Tat of CBRE.