International investor snaps up landmark Cranbourne West childcare centre for $8.5 million

A Malaysia-based investor has secured a brand-new childcare centre in Cranbourne West for $8.5 million, reflecting the robust international capital flows for Victoria’s childcare property market.

Located at 142 Central Parkway, within the heart of the thriving Cranbourne West precinct, the centre drew five competitive offers - three from Asian capital and two from Australian bidders.

The property achieved a yield below 5.4%, which marks the sharpest result transacted above $8 million in Victoria’s outer suburbs for the year to date.

The transaction was brokered by CBRE’s Australian Healthcare & Social Infrastructure team, led by Jimmy Tat, Marcello Caspani-Muto, and Sandro Peluso.

“The demand for Cranbourne West was exceptional and highlights a broader trend of competitive investor appetite for high-quality early learning assets in growth corridors,” Mr Tat said.

“Childcare remains a critical service, fuelling workforce participation and supporting local families. Offshore buyers comprised over 60% of formal offers, reinforcing our sector’s global reputation as a secure, income-producing asset class underpinned by strong government support,” Mr Tat added.

The purpose-built centre offers 116 long daycare places, with a passing income of $463,500 per annum (plus GST) and fixed 3% annual increases, secured by a brand-new 15-year lease to Bluebird Early Education—a leading operator within the Oxanda Education Group.

The asset occupies 1,740 sqm at the entrance of the fully sold-out Linc Townhomes estate, surrounded by over 1,000 new homes and adjacent to Quarters Primary School, underpinning long-term demand.

Mr Peluso noted CBRE’s ongoing leadership in transacting premium childcare assets nationally at yields below 5.5%.

“This sale follows recent CBRE transactions including a childcare centre at 491 Highett Road, Highett for $12.5 million, reflecting a 4.99% yield. It’s a testament to ongoing investor confidence, with long-term leases and solid policy support making childcare one of Australia’s most defensive asset classes. Victoria continues to attract repeat international interest, delivering yields typically 100–150bps higher than Sydney or Brisbane,” Mr Peluso said.