Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

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MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

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The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

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Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

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Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

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Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

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The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

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Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

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“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

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Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

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Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

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Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Childcare

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Childcare chain Guardian Early Learning Group has recently leased two properties in inner-city Melbourne on long-term contracts in deals brokered by Colliers International.
In the latest leasing deal, Guardian has secured a major 2,950 sqm site on Hoddle Street in Richmond. The 15-year deal was brokered by Colliers’ Matt Cosgrave and Ash Dean.
“This property, which had been vacant for six years, will now be turned into state-of-the-art childcare centre,” Cosgrave said. 
“It is a sizeable, prominent site which has been approved for use as a childcare facility to help address the growing demand in the area.” 
This deal follows on from Guardian’s commitment at 101 Collins Street in the CBD for a property on 2,186 sqm.
Cosgrave said Colliers International was seeing strong demand for childcare services closer to inner city workplaces. 
“End-of-trip facilities such as showers and bike storage were once rare in an office building – now they are seen as standard inclusions,” he said. “Now lifestyle factors such as childcare and co-working space are becoming an increasingly viable option to attract quality tenants to a building.”
“Businesses are increasingly trying to make it easier for parents who work in the CBD and city fringe locations to drop off and pick up their children on their way to or from work. Not only does this help employees maximise their work day and increase efficiency, it makes their daily lives easier at the same time,” he added.
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Childcare provider leases vacant Melbourne building for modern facility

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Market competition in the childcare space has seen yields sharpen over the last six months, ranging from 3.9 percent to 7.3 percent, according to a white paper from Colliers.
According to Colliers, sales in the childcare space were sporadic, and typically at higher yields than the retail and industrial market. The report noted a sale in September 2010 which transacted at a yield of over 14 percent, the highest since March 2007.
"Since then, yields have sharpened quickly, and this is not surprising given the newly created competition that has occurred amongst organisations keen to expand their portfolio," the report said.
"Yields have ranged from 3.90 percent to 7.30 percent in the last 6 months and while we can see further consolidation occurring, inconsistency is still apparent. The most recent transaction recorded in April 2016 attracted a yield of 3.90% percent Prior to this, the lowest yield achieved occurred in April 2014 at 4.32 percent.
"A heavy concentration of sales occurred on the east coast of Australia, especially in recent years with sales increasing from only 2 auctions in 2008 to 33 in 2015, most of which are tenanted with a 10 year average initial lease term. The first half of 2016 has seen 18 child care centres sold with the bulk of transactions occurring in New South Wales."
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The report said most childcare sales now include longer least terms, previously ten years.
"However as sales activity increases within this new investment sector, we’re seeing lease terms of 15 to 20 years emerge, along with a further 15 to 20 years in options which are to be exercised 5 years in advance. Anything under a term of 10 years for a new lease is a rarity and not widely considered by landlords. "
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Childcare investment driving yields higher: Colliers

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Colliers International are auctioning a portfolio of four G8 childcare centres and seven neighbourhood retail shops across Queensland and South Australia on Wednesday 15 June at 10.30am.
The Ormeau Kids and Ormeau Shopping Centre at 1 Arthur Way in Ormeau, Queensland can be purchased separately or together. The childcare centre has a 10 year lease with options through to 2041. The shopping centre is 100 percent leased with 7 retail tenancies including Pizza Capers, Liquor Legends, Friendly Grocer, Thai Restaurant, Café, Chemist and Hairdresser.
Coomera Kids at 1/1 Brygon Creek Drive Upper Coomera, Queensland has 224 places over 3,743 sqm and a fully leased net income of $523,185.
Upper Coomera Kids at 35 Nicola Way, Upper Coomera, Queensland has 138 places over 2993 sqm and a fully leased net income of $322,319
<div id="x_prop3iconoption3_START">Morphett Vale Early Learning Centre at 105-107 Flaxmill road Morpheme Vale, South Australia has 85 places and a fully leased net income $187,487. It is on a land area of 1,902 sqm.</div>
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Portfolio of four G8 childcare centres going to auction

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A Sunshine West childcare centre is on the market with expectations in the mid-$3 million range as demand from investors for the secure lease profiles on offer in the sector is seeing yields tighten.
The 2 David Drive property comprises a purpose-built centre, with a 703 square metre building licensed for 93 places.
The 2,216 square metre site is leased to ASX-listed operator G8 Education and includes outdoor playing areas. 
G8 Education Limited is a national operator with more than 450 child care centres. It has a 10-year lease expiring November 2018 with two five-year options at $198,061 per annum. 
According to marketing agents, Savills’ Julian Heatherich and James Lockwood, the property will test the market in a strong education precinct comprising eight primary schools and five secondary schools.
Lockwood said the sheer number of investors clamouring for a piece of the childcare centre action had seen yields fall continuously over the last 18 months, with yields in Melbourne now as low as 3.89 per cent.
"What has worked so well for childcare centres, apart from the obvious growth industry aspect, are the secure lease profiles, usually to national operators, and the prime, main street, locations,’’ Lockwood said.
 
 
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Childcare centre in Melbourne's Sunshine West on the market

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A childcare centre in Brisbane with a new 15-year lease will go under the hammer at a Burgess Rawson auction in Melbourne on May 18.
The purpose-built facility at <a href="https://www.burgessrawson.com.au/3P1290#.VzGK_WPwyb9" target="_blank">3 Camelia Avenue, Everton Hills</a> has a land area of 2,190 sqm and is licensed for 91 LDC places.
Its 15-year lease expires in 2031 with options for two 10-year extensions.
The centre earns a net income of $191,067 pa with a minimum 3 percent annual rent increases.
According to Burgess Rawson, it is a well regarded and successful child care provider with an additional centre in Bald Hills and more than 15 years experience.
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Childcare centre in Brisbane up for sale at Burgess Rawson auction

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Childcare centres were much in demand at Burgess Rawson's 103 portfolio auction in Sydney on Tuesday, with all the four on offer being snapped up by investors.
Hubba Bubba Child Care at <a href="https://www.burgessrawson.com.au/buying/NSW/North-Shore-~-Lower/Chatswood/Office/2P1153#.Vv2x_GR946U" target="_blank">204 Mowbray Road</a> in Sydney's Chatswood, which had received 185 enquiries prior as reported by Property Observer, sold for $2.41 million on a record low yield of 3.9 percent to a local investor.
The 26-place childcare centre with 100 percent occupancy earns a net of $94,000 pa plus GST. 
The portfolio auction of 19 properties generated more than $35 million in sales, according to the Australian Financial Review.
Burgess Rawson director Dean Venturato said the Chatswood childcare centre sale was the clear standout result.
"We've sold over 120 childcare centres over the last two years and it's the first time we've sold one on sub-4 percent yield," he was quoted as telling AFR.
 
Another childcare centre, at <a href="https://www.burgessrawson.com.au/buying/NSW/Northern-Beaches/Freshwater/MedicalorConsulting/2P1163#.Vv2042R946U" target="_blank">10/4-8 Waine Street, Freshwater</a>, sold on a 6.1 percent yield. This one has 80 places with 100 percent vacancy and a waiting list.
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<div>The Prairewood centre at <a href="https://www.burgessrawson.com.au/buying/NSW/Western-Sydney/Prairiewood/MedicalorConsulting/3P1258#.Vv2222R946U" target="_blank">6 Pierce Close</a>, in the outer west, sold on a 5.1 percent yield.</div>
 
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Childcare centres ripe for Burgess Rawson's 103 portfolio auction

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A childcare centre in Littlehampton in Adelaide Hills leased to ASX-listed G8 Education is up for sale at a Burgess Rawson portfolio auction in Melbourne on April 6.
The <a href="https://www.burgessrawson.com.au/buying/SA/Adelaide-Hills/Littlehampton/MedicalorConsulting/3P1257#.VvCcP2R96u5" target="_blank">1 Rosella Court</a> centre is on a 1.36 ha site with future redevelopment potential subject to council regulations.
The centre is on secure 10-year lease to G8 Education plus options through to 2040. G8 has more than 450 centres nationally.
The rent is $237,405 pa and there is a fixed 4 percent pa rent increase with the tenant paying all the usual outgoings.
The property has dual childcare facilities with main building licensed for 125 places and includes G8's state training/conference HQ, plus purpose built pre-school facility licensed for 45 places (completed 2014).
Littlehampton is a suburb of the Mount Barker District, with its population forecast to grow 58 percent by 2036 and located 30 km east from the Adelaide CBD.
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Childcare centre in SA's Littlehampton up for sale at Burgess Rawson auction

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Childcare centres are much sought-after by investors, with a purpose-built childcare centre in Sydney's Dee Why selling for $6 million to a private investor at auction this week through Colliers International.
The two-storey centre at 63 Lynwood Avenue is approved for 86 childcare places.
It was custom built in 2009 on a 1672 sqm block, said selling agents Brian McInally and Corey Beauchamp of Colliers International.
The property earns a net rental of $358,537 plus GST per annum, and the sale translates to a yield of 5.97%.  
“While we’re seeing yields compress in this asset class, childcare properties are still highly lucrative for investors when compared to other property classes,” said McInally.
The centre is privately run, with the parties agreeing to a 10-year lease with a 10-year option.
It was bought by a private investor, who has a portfolio of petrol stations and was looking to diversify. 
“Childcare is an appealing option for many investors,” said McInally. 
“Demand for childcare places will continue to grow. Our population growth, combined with the strong diversity push to encourage more mothers to return to work means that childcare places are hotly contested. This demand will fuel further growth in childcare property.”
Recently, another childcare centre in Melbourne's Camberwellwas snapped up by a China-based investor for $6.82 million on a tight yield of 5.05 percent. 
The buyer paid more than $400,000 over the reserve for the hotly contested property.
The sale follows a similar result late last year when a China-based investor paid $2.3 million on a 5.1 per cent yield for a childcare centre at Rowville.
Late last year, two childcare centres were sold at a Burgess Rawson portfolio auction in Melbourne for well above $3 million and yields of 5.6 percent.
The one in Hampton sold for $3.95 million and the other in Heatherton for $3.2 million.
 
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Childcare centre in Sydney's Dee Why sells for $6 million, reinforcing recent trend

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Childcare centres are firmly on the radar of off-shore investors, as evident from the sale of a childcare centre in Melbourne's Camberwell to a China-based investor for $6.82 million after more than 70 percent expressions of interest coming from foreign buyers.
The purchaser paid more than $400,000 over the reserve - on a 5.05 per cent yield, the firmest yield yet recorded in the price range. The sale follows a similar result late last year when a China-based investor paid $2.3 million on a 5.1 per cent yield for a childcare centre at Rowville.
Head of Savill’s Childcare Investments team, Julian Heatherich, who brokered the 164-168 Warrigal Road deal with James Lockwood, said childcare centres were now flavour of the month.
"Childcare has really come of age as an asset class in its own right and this sale presents unequivocal evidence. We currently have more interest for child care investment than any other asset class. The property drew well over 100 enquiries with seven out of ten formal offers coming from off-shore,’’ Heatherich said.
Located directly opposite Wattle Park Primary School, the modern, purpose-built centre comprises a 547 square metre floor area and 24 car spaces on a 2,065 square metre site with three street frontages. It was sold subject to a 10 year lease with option for a further 10 years to national operator, Affinity Educational Group, at an annual net rental of $344,986.
Heatherich said strong government support for one of the nation’s most rapidly growing industries was a key driver of the growing demand for chlldcare centre investments with centres selling off-market, off-the-plan, prior to auction and at hotly contested auctions.
He said the Rowville property had also attracted more than 100 enquires.
Heatherich said yields for childcare centres had, until recently been in the 6 to 7 per cent range but were now below 6 per cent.
"This is another example of buyers being prepared to buy on yields under six per cent and with such a strong foreign contingent vying for these centres it’s likely that we will see yields tighten even further over the course of this year.’’
Long term leases and strong government support for one of the nation’s most rapidly growing industries along with a statutory obligation for lessees to fastidiously maintain in the best possible order a facility which houses young children, had been key drivers of the increase in demand in the sector.
The Productivity Commission report into the childcare sector suggested an additional 50,000 long day care places will be needed to accommodate the population growth in children and the subsequent demand for childcare over the next ten years, while an increase in the maximum daily subsidy for childcare, proposed by the Federal Government, has provided further confidence for a market which is already one of the nations’ strongest employment growth sectors,’’ Lockwood said.
The federal government, in the 2015 Budget, announced $3.2 billion of new spending over four years to improve the affordability of childcare for low and middle income earners.
According to the Department of Social Services data, 1.2 million children attended approved child care in the year to September 2014, up 8.1 per cent on the previous year while the number of long day care centres grew to 6601.
"Childcare centres are going to figure prominently in investor portfolio considerations for years to come. We are only seeing the start of that trend now,’’ Lockwood said.
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