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Investment Highlights

  • Securely leased to an established childcare operator licensed for 50 places.
  • Current annual rent of $118,000 plus GST with next review scheduled for July 2028.
  • Substantial land parcel of approx. 1,400 sqm provides strong underlying value and potential future development (STCA).
  • Exceptional lease term structure: 5 x 5-year options with final expiry in 2048.
  • Prominent corner location along a major arterial road with high traffic flow.
  • Onsite parking for four vehicles enhances convenience.

Executive Summary

This rare childcare investment opportunity offers a secure and long-term income stream in Melbourne’s sought-after eastern suburbs. The property is underpinned by an established tenant operating a fully licensed childcare facility with accommodation for 50 places. A robust lease structure provides security through multiple renewal options, extending the tenancy through to 2048.
Positioned on a prominent corner along Dorset Road, the site delivers maximum exposure to significant passing traffic and enjoys easy accessibility. The surrounding area is a well-established residential catchment with strong demand for early education services, enhancing the property’s long-term occupancy appeal.
This freehold offering combines passive investment security with compelling future upside. The substantial landholding allows for potential redevelopment or alternate use opportunities subject to council approval at the conclusion of the lease term. With consistent rental income and capital growth prospects, this is a compelling asset for investors seeking durable returns in a tightly held location.

Property Facts

Sale Type
Investment
Property Type
Retail
Property Subtype
Day Care Center
Building Size
2,691 SF
Building Class
C
Price
$1,628,217
Price Per SF
$605.07
Cap Rate
5.22%
NOI
$85,013
Tenancy
Single
Building Height
1 Story
Building FAR
0.18
Lot Size
0.35 AC

Amenities

  • Fenced Lot
  • Signage
  • Recessed Lighting
  • Air Conditioning
  • Smoke Detector
  • Listing ID: 40358054

  • Date on Market: 5/1/2026

  • Last Updated:

  • Address: 421 Dorset Road, Croydon, VIC 3136

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