Prime childcare and medical investment opportunity hits the market in Thornhill Park

A permit-approved early learning and medical asset in Melbourne’s west is set to test investor appetite for secure income, long-term leases and value-add potential in a high-growth corridor.

Investors seeking exposure to the early childhood education and care (ECEC) sector have a new opportunity in Thornhill Park, Victoria, with a childcare centre and approved medical development site brought to market at 1 Murray Road.

The offering combines a 112-place early learning service with surplus land already permit-approved for a medical centre, positioning the asset as both an income-generating investment and a future development play in Melbourne’s expanding western growth corridor.

At the core of the offering is a purpose-built childcare centre licensed for 112 places, supported by 24 on-site car parks.

The property is secured by a 15-year head company lease to Eden Academy, a national early education operator. Including options, the lease profile extends to 2060, providing long-term income visibility.

The asset currently generates $504,000 per annum plus GST and outgoings. Fixed annual rental increases of 3 per cent support consistent income growth across the lease term.

For investors focused on defensive asset classes, long-dated leases to established ECEC operators remain a key attraction, particularly in growth areas with rising demand for early learning services aligned to the National Quality Framework (NQF).

Further strengthening the investment profile is an 840 sqm surplus land parcel at the site. The land is permit-approved for a medical facility with 14 dedicated car parks.

On a fully leased basis, the combined annual income across the childcare and medical components is estimated at $629,500 per annum, offering the potential for income diversification within one landholding.

The approved medical use may appeal to buyers seeking exposure to complementary social infrastructure assets, with healthcare and early learning often co-located in family-oriented residential communities.

The campaign is being managed by CBRE’s Healthcare and Social Infrastructure team, Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat.

Mr Peluso said the listing builds directly on recent market momentum, with the sale of a childcare centre in Oak Park, at a yield of 5.35%, which was also leased to Eden Academy.

“The tenant is really well received and highly sought after in the marketplace,” Mr Peluso said.

The Thornhill Park asset is located within Melbourne’s western growth corridor, an area characterised by significant residential expansion and increasing demand for essential community services, including early learning and healthcare.

As population growth continues to drive demand for ECEC places in emerging suburbs, assets that combine secure childcare income with development upside are likely to remain firmly on investor radar.