20 Alphey Road, Clyde North

20 Alphey Road C LY D E

N O R T H

For Sale by Expressions of Interest closing Thursday 6th of August 2020 at 2pm

Contents

20 Alphey Road C LY D E

N O R T H

INTRODUCTION 04 EXECUTIVE SUMMARY

06

CHILDCARE SECTOR SNAPSHOT

08

WHY BUY?

10

LOCATION 12 TENANCY DETAILS

16

FINANCIAL DETAILS

18

PROPERTY PARTICULARS

20

FLOOR PLAN

22

MARKET SALES ACTIVITY

24

SALE METHOD

26

Introduction

Aston Commercial are pleased to offer 20 Alphey Road, Clyde North for sale by Expressions of Interest closing on Thursday 6th August 2020 at 2pm.

This recently completed childcare facility has been purpose built to accommodate 122 places featuring the highest quality internal fit out and outdoor playscape.

Leased to experienced operator One Early Education Group this property is strongly positioned amongst one of Melbourne’s largest and fastest growing residential corridors.

Aston Commercial highly recommend this long-term investment as an addition to your property portfolio.

4

Executive Summary PROPERTY

LOCATION

20 Alphey Road, Clyde North.

Approximately 46km South-East of Melbourne’s CBD and 6km East of Cranbourne commercial precinct.

DESCRIPTION

LEASE DETAILS

Brand new Childcare facility licensed for 122 places plus 28 on-site car spaces.

Securely leased to One Early Education Group on a longterm lease returning $305,000 per annum.

LAND / BUILDING AREA

ZONING

Land Area: 3,084 sqm* Building Area: 923 sqm*

Urban Growth Zone - Schedule 7 (UGZ7)

METHOD OF SALE

TERMS OF SALE

For Sale by Expressions of Interest (EOI) closing on Thursday 6th August 2020 at 2pm

10% deposit with balance payable in 60-90 days

EXCLUSIVE SELLING AGENTS

6

Liam Rafferty

Jeremy Gruzewski

Senior Sales Executive 0421 886 655 liam@astoncommercial.com.au

Director of Agency 0422 211 021 jeremy@astoncommercial.com.au

Childcare Sector Snapshot KEY STATISTICS

8

1,269,260 children

882,540 families

ATTENDED APPROVED CHILDCARE

HAD AT LEAST ONE CHILD IN APPROVED CHILDCARE

VICTORIA MAKES UP APPROXIMATELY

IN TERMS OF AFFORDABILITY

24%

90.7%

OF ALL CHILDCARE INTAKE

OF THESE FAMILIES ARE ESTIMATED TO HAVE RECEIVED CHILD CARE REBATE (CCR), WITH UP TO 50% OF THEIR OUT-OF-POCKET COSTS COVERED

BY THE AUSTRALIAN GOVERNMENT

Source: www.education.gov.au - June 2018

CHILDCARE SECTOR

Average weekly hours for Centre Based Day Care by state and territory December quarter 2018 40.0 36.2 35.0 31.4 30.0

29.4

30.8

29.4 26.4

26.4

25.0

23.9

20.0

15.0

10.0

5.0

0.0 NSW

VIC

QLD

There is no doubt that the Childcare sector

SA

WA

TAS

NT

ACT

LONG TERM LEASE

has exploded throughout Victoria and across Australia. It has become an investors

Most childcare offerings give investors the

paradise with a large sway of transactions

comfort of long term leases enabling them

and a noticeable reduction in achievable

to set and forget and enjoy the income.

yields. Childcare offers investors, long term

With the significant income required to

leases, heavily funded by government and

create the environment for our children

staggering growth of users making it a safe

to grow and be enriched, operators are

place to invest.

looking at long term lease to not only get full value of the initial expenditure but establish a business and brand.

9

Why Buy?

SECURITY Long term lease to quality tenant.

HIGH OCCUPANCY It is a growth suburb with a high percentage of young families that will statistically seek and use childcare.

INCREASE IN CAPITAL VALUE With strong population growth in the immediate area, land becomes scarce and with that the site becoming underpinned by rising land values.

DEPRECIATION BENEFITS Having just been built, buyers will be able to unlock maximum depreciation benefits.

10

Location This property is located in Clyde North approximately 46km south-east of Melbourne’s CBD in a newly created housing estate known as “Delaray” just east of Berwick-Cranbourne Road.

Located within the City of Casey this is one Victoria’s most populous municipalities, with an estimated 2019 population of 353,872.

The surrounding area is well serviced by public transport with two main train lines, namely the Pakenham and the Cranbourne lines, providing easy access into metropolitan Melbourne. Similarly, the area is well serviced by major road linkages with the Princes Freeway located to the north and the South Gippsland Highway to the south. Surrounding suburbs include Cranbourne, Narre Warren, Officer & Berwick.

Some nearby businesses and schools include:

RETAIL: • Selandra Rise Shopping Centre (1.9km) • Shopping on Clyde Shopping Centre (2.3km) • Aldi Clyde North (2.5km) • Bunnings Clyde North (2.6km)

EDUCATION: • St Peter’s College (1.6km) • Wilandra Rise Primary School (2km) • St Thomas the Apostle Primary School (2.5km) • Cranbourne East Secondary College (3.4km)

12

Tenancy Details TENANT PROFILE One Early Education Group exclusively offers the first Brain Development Program from the USA, placing a special emphasis on brain development and its importance in early childhood education with specifically designed activities on multiple formats using sight, touch, sound and play in an environment to influence the way a child’s mind grows.

Additionally, One Early Education Group offers nutritionally balanced meals and snacks created by their own specialist nutritionist.

One Early Learning Group provides holistic and individual programs enhancing the most important years of a child’s brain development and learning patterns that occur from birth to age five. One Early Education Group provides an experience for children that is immensely nourishing and developmental to the richness of a child’s early years, social interaction, curiosity stimulation, structure and free-form learning adventures, through both planned and spontaneous play.

Their unique approach places special emphasis on all aspects of each child’s development with their tailored enrichment programs integrating Art & Music, mindfulness and sport across the learning and development of each child.

One Early Education Group have further centres located in: • Cranbourne • Wollert • Officer • Roxburgh Park • Mickleham For further information, please visit: www.onelearn.com.au 16

Financial Details TENANCY DETAILS LESSEE: Clyde North Early Education Group Pty Ltd RENTAL: $305,000 pa + GST and outgoings LEASE TERM: Fourteen (14) years and eleven (11) months LEASE COMMENCEMENT: 1st July 2020 LEASE EXPIRY: 31st May 2035 FURTHER OPTIONS: Three (3) further terms of ten (10) years RENT REVIEWS: Fixed 3% annual rent increases and market review at the commencement of each further term.

SECURITY: An amount equal to three (3) month’s rent plus GST

18

Property Particulars TITLE PARTICULARS 20 Alphey Road, Clyde North Volume: 11819 Folio: 941 Lot D on Plan of Subdivision 730320

LAND DIMENSIONS AND AREA Alphey Road Frontage

47 metres*

Hallyburton Drive Frontage 52 metres* Northern Boundary

60 metres*

Southern Boundary

60 metres*

Total Land Area:

3,084 square metres*

*Approx

ZONING: Under the City of Casey Planning Scheme the land is zoned Urban Growth Zone - Schedule 7 (UGZ7).

LICENSE: This property is licensed for 122 places.

BUILDING ACCOMMODATION: • Reception + office + planning room • Seven (7) education rooms with direct access to external play area • One (1) cot room • Children’s bathrooms • Kitchen + laundry • Staff room • Unisex and disabled toilets • Multipurpose room • 28 car spaces on title 20

Floor Plan playstore

1660

1660

600

veranda35

toi cha 03

veranda35

activity 03 22 children over 3 yrs toilet/ 74.88 change

10490

EXISTING HOUSE

pr

03/04

activity 03

activi

22 children plant over 3 yrs 74.88

10490

EXISTING HOUSE

600

playstore

22 sto chi over 3 74.

prep

pram store store

plant

10380

10380

pramstore store store 12 children under 3 yrs store 43.49

activity 02

s bottle

VACANT LOT 0 1:200 (A3)

bottle

change 12 children under 301/02 yrs 41.65

10m

10m

activit

12 child under 3 41.6

activitytoilet/ 01

toilet/ change 01/02

VACANT LOT

800

800

12 children under 3 yrs 43.49

0 1:200 (A3)

22

s

activity 02

sleep

deck

44600 40760

2180

veranda

veranda

EXISTING BUILDING (FLAT ROOF)

toilet multi-purpose

ity 04

kitchen laundry

ildren 3 yrs .57

dis. toilet

activity 05 prep/store

22 children over 3 yrs 75.40

staff toilet

plant

store

planning

library

store

store

actvity 07 staff

16 children under 3 yrs 56.81

prep

activity 06 .0 35

reception

tunnel

fe at ur e

w

20870

al l

store store

16 children under 3 yrs 58.32

office

toilet/ change 06/07

foyer

COMMUNITY CENTRE

UNDER CONSTRUCTION

safety zone

FLOOR PLAN Floor Area Roofed Veranda Area Safety Zone Area

884.6 sqm 29.5 sqm 8.9 sqm

Total Floor Area

923.0 sqm

23

Market Sales Activity COMPARABLE SALES 28-34 MARENGO STREET, TARNEIT Price: $5,450,000 Date: March 2020 Rental: $316,087 Places: 120 Rent Per Place: $2,634 Yield: 5.8%

1028 WELLINGTON ROAD, ROWVILLE Price: $6,900,000 Date: August 2019 Rental: $402,318 Places: 124 Rent Per Place: $3,245 Yield: 5.8%

30 WOODCUTTERS GROVE, EPPING Price: $4,780,000 Date: June 2019 Rental: $276,265 Places: 120 Rent Per Place: $2,302 Yield: 5.7%

6 PARKER STREET, OFFICER Price: $5,250,000 Date: October 2019 Rental: $322,500 Places: 129 Rent Per Place: $2,500 Yield: 6.1%

64-68 STUBBS STREET, KENSINGTON Price: $8,250,000 Date: November 2019 Rental: $450,800 Places: 92 Rent Per Place: $4,900 Yield: 5.2%

24

VIRTUAL INSPECTION COVID-19 ENVIRONMENT HAS CHANGED THE WAY WE CONDUCT AND THE WAY PEOPLE WANT TO DO INSPECTIONS. While we welcome inspections they can only be done on a one-on-one basis. As an operating early learning centre the operators are also conscious of having large groups and inspections.

We have therefore completed a “walk-through” video, internal photos and detailed floorplan of the centre.

Should you wish to inspect, we will do our best to accommodate for you, and the tenant given the current circumstances

PLAY VIDEO

25

Method of Sale

METHOD OF SALE

TERMS OF SALE

For Sale by Expressions of Interest (EOI) closing on Thursday 6th of August 2020 at 2pm

10% deposit with balance payable in 60-90 days

INSPECTIONS

CONTRACT OF SALE & VENDORS STATEMENT

Strictly by appointment with the exclusive selling agents

Available on request.

EXCLUSIVE SELLING AGENTS

26

Liam Rafferty

Jeremy Gruzewski

Senior Sales Executive 0421 886 655 liam@astoncommercial.com.au

Director of Agency 0422 211 021 jeremy@astoncommercial.com.au

DISCLAIMER This document has been prepared by Aston Commercial Pty Ltd for advertising and general information only. Aston Commercial Pty Ltd do not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own enquiries as to the accuracy of the information. Aston Commercial Pty Ltd excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damage arising therefrom. *Approximate