Insights Library
Childcare Sector Shows Strength in Adversity
As the Victorian property industry navigates the challenges of the current economic climate, tax and policy changes and increased construction costs we continue to witness encouraging growth and activity in the childcare sector.
In the past six months alone, Best Hooper’s Transaction and Planning teams have been involved in some very notable projects in this sector all across metro and regional Victoria, providing assistance to clients with projects at all stages of the project lifecycle including:
- Langwarrin – Sale & Pre-Lease – For a 110 place centre developed, pre-leased and sold to a private local investor in excess of $8 million;
- St Kilda – Acquisition & Refurbish – Negotiations for a $7-9 million acquisition, overhaul and refresh of a centre previously operating with 149 places;
- Spotswood – Planning Permit Obtained on Appeal – A permit was issued in VCAT for a 130 place centre in a mixed use development in Spotswood following the successful appeal to the Supreme Court against an earlier decision of the Tribunal refusing to grant a permit for a childcare centre because of its proximity to a major hazard facility. The Supreme Court accepted that the Tribunal had erred in law in arriving at its decision to refuse the application;
- Beaconsfield – Re-purpose and New Lease – The refresh and re-lease of a 140 place centre obtaining new service approvals under new regulations;
- Glen Iris & Camberwell – Construction Completion and New Leases – Pre-lease, construction and handover of a 99 place centre in Camberwell and obtaining planning permit and completion of an owner-operated 172 place centre in Glen Iris; and
- Hawthorn & Brunswick – Boutique Centre Pre-Lease – Preleasing of a boutique 68 places centre in Hawthorn for near record-breaking rates of over $6,000 per child place and pre-lease of a 126 place centre in Brunswick.
We represent various developers both small and large scale including some operators and owner operators in the development, sale and leasing of their childcare centre sites from the initial planning stages through to the negotiation and execution of sale or lease transaction documents to the purchaser investor or operator tenant. As a value add, we have a good working relationship with a number of leading estate agents in the childcare industry who represent both developers and the purchasers or tenant operators who can often assist the parties in overcoming commercial obstacles in complex childcare transactions.
Both Giancarlo Romano, the Team Leader in the Property Law & Transactions Team, and Maliq Maideen have together represented clients in more than 20 transactions in the last 18 months and together have over 20 years of experience in the industry. Our Planning Team are leaders in the industry and have over 40 years of experience in achieving successful outcomes for the developers and operators for their childcare planning permits.
Our experienced teams are on hand to assist both seasoned and first-time developers, investors and operators in their childcare centre projects at any point in the property ownership or development lifecycle.
