Daycare centre follows market trend
A building and land home to Kapiti Coast’s newest childcare centre is on the market.
Formerly the local Returned and Services Association club, the property in Amohia St, Paraparaumu, is expected to attract investors.
Colliers International Kapiti broker Dean Anderson said the building was built in the 1950s and had been completely refurbished into a new childcare centre for Magic Sparks.
The property was a good example of the market trend for redeveloping older, obsolete buildings rather than building new, Anderson said.
‘‘We’re seeing many older buildings being given a new lease on life in various sectors across the commercial property market, and this is a great example of how an older building can be successfully adapted for a new type of use.’’
Anderson said the property was a ‘‘solid, long-term investment’’, as Magic Sparks had a 12-year lease, with rights of renewal for a further 12 years.
The building sits on a 1976-square-metre site, earning a net income of about $150,000 a year.
‘‘This property’s location on the fast-growing Kapiti Coast, serving a large residential catchment, combined with the reputable tenant on a long lease, give it highly desirable investment attributes,’’ he said.
Those attributes included the long-term lease, the security of fixed income growth, and a tenant with other childcare centres in its portfolio, Anderson said.
‘‘Magic Sparks is replicating its tried and true daycare model here that it already operates successfully in its two centres in Palmerston North and another in Petone,’’ he said.
The centre, which is licensed for 90 children, includes a singlelevel building with four main internal areas plus outdoor play areas and car parking.
Anderson said: ‘‘Demand continually outstrips supply in the childcare sector and this is likely to continue with the strong population growth forecast for the Kapiti Coast.’’
The Kapiti Coast represents over 10 per cent of the Wellington region’s population.
Major developments in the area include the Kapiti Expressway, the Wellington to Levin Northern Corridor, Transmission Gully and the Kapiti Landing business park.
Government subsidies had created a stable industry resulting in childcare centres becoming ‘‘highly attractive business and investment propositions’’, Anderson said.