Stonebridge Sources First Time Chinese Investor for Off-Market Victorian Childcare Centre

Stonebridge Property Group has confirmed the off-market sale of Whiz Kidz Early Learning Centre Brookfield, delivering one of the strongest pricing outcomes in the Victorian childcare investment market over the last 12 months.

The asset was sold for $5.78 million, reflecting a 5.24% passing yield (5.40% at settlement). The result represents the second-lowest yield achieved for a Victorian childcare centre above $3 million in 2025, underscoring the continued strength of investor demand for high-quality early learning assets.

The transaction was negotiated by Stonebridge Property Group’s Kevin Tong, Rorey James and Max Sinclair, and was purchased by a locally based Asian investor who had been actively assessing multiple asset classes over the past six months. Consistent with a key theme throughout 2025, the purchaser adopted a sector-agnostic investment approach, having previously considered shopping centres, supermarkets and fast-food assets before ultimately securing the childcare centre.

Located at 222 Clarkes Road, the 102-place childcare centre occupies a 2,175 sqm* site approximately 38 km* from the Melbourne CBD. The property is offered with a secure 15-year lease to 2039, with two further 10-year options and fixed annual rental increases of 3.00%.

Stonebridge Asia Practice Partner, Kevin Tong commented on the sale, “One of the key attractions for the purchaser was the strong underlying trading performance of the childcare centre. We had been working with this buyer for over six months, and they were ultimately drawn to this asset due to its consistently high occupancy levels.”

“Increasingly, it’s critical to educate buyers beyond the headline metrics of lease term and rental income. Factors such as occupancy rates, strength of the tenant covenant, and proximity to competing centres are playing a far greater role in how childcare assets are assessed and valued,” Tong continued.

In a notable reflection of this trend, the purchaser undertook multiple onsite inspections over several days, closely observing traffic flow and enrolment activity before committing to the acquisition. This operational diligence provided the confidence required to proceed with the transaction.

The sale highlights the growing presence of offshore-aligned capital in the Victorian childcare sector, particularly for assets offering demonstrable operational strength and long-term fundamentals.

Across 2025, Victorian childcare assets have consistently traded at yields approximately 100 basis points higher than comparable assets in other eastern seaboard states. However, a number of late-year transactions – most notably Whiz Kidz ELC, Brookfield, and Nido Early School, Clyde North, which transacted on a 5.50% yield – suggest this pricing differential is beginning to narrow, with the opportunity for investors to capitalise on the gap now progressively closing.

The Stonebridge National Portfolio Team is the leading freestanding investments sales team with over 30 years of combined experienced dedicated to blue chip retail, fast food, childcare, medical, and fuel and convenience investments. With offices in Melbourne, Sydney, and Brisbane, the team has access to premium assets and a deep network of investors across Australia, having transacted $1.5+ billion in freestanding investments since 2024.

For further details, please contact:

Kevin Tong
Partner, Asia Practice
Stonebridge Property Group
M: +61 422 848 818
E: ktong@stonebridge.com.au

Rorey James
Partner
Stonebridge Property Group
M: +61 439 400 081
E: rjames@stonebridge.com.au

Max Sinclair
Manager
Stonebridge Property Group
M: +61 458 269 293
E: msinclair@stonebridge.com.au

Please visit our website at: https://stonebridge.a.webitwebit.com.au/