Interstate investor snaps up Tecoma children’s centre for $4.4 million

A renovated early childhood education and care (ECEC) service, in Tecoma, on the foothills of the Dandenongs Ranges and 35km from Melbourne’s CBD, has sold for $4.4 million to an unnamed interstate investor. 

The 78-place service is located at 4 Rutherford Road, and was offered for sale with a ten year lease to Mayfield Childcare Limited, with options for the occupier to remain onsite until 2049. 

2021 has begun with strong sales in the ECEC asset space, with HomeCo acquiring two Melbourne childcare centres for an essential services focused REIT: at Tarneit and Essendon and five assets of this type sold in the recent weeks, including a 73-place complex at 1 Sparks Avenue, Burwood, which sold for $7.11m.

The Tecoma site contains a 550 square metre structure, playground and car park, and spans 2779 square metres. 

Agents Mark Stafford and Julian Heatherich from Savills said there are a number of “motivated and active investors” chasing this kind of product as well as retail, medical, service stations and offices as sales rebound optimistically from the economic challenges and uncertainties of 2020.

This story was also covered by Real Estate Source. To access this coverage, see here.