Blockhouse Bay childcare for sale
The building and land housing a recently commissioned Blockhouse Bay childcare business is on the market for sale.
JLL agent Kevin Reardon is marketing the facility, located at 21 Boundary Rd.
The offering comprises a purposebuilt 313sq m childcare building — now tenanted by a private operator on a 900sq m freehold site.
“With a long- term- lease in place, this property will provide a stable, passive income, returning net rental income of $ 135,200pa,” says Reardon. It will be sold through an expressions of interest campaign, closing September 14, unless sold earlier.
The building i s over t wo levels, with modern fittings including electronic doors, a kitchen upstairs and another kitchen area on the lower level. There is a large play area outside, plus nine carparks. The operator is well established, with other centres located around Auckland, says Reardon.
“The developer noted a shortage of childcare facilities in the area and sought to meet demand. They purchased the land and put an architect to work to design everything from the ground- up.
“However, if required, the design and location allows for easy conversion back to residential use.”
It sits on a Blockhouse Bay street, in an area popular with young families. Near New Windsor, the childcare centre draws business from both areas.
Reardon says childcare centres remain a strong and reliable investment that continue to provide competitive returns. More and more parents need to return to work to meet living costs, which results in an increase in demand for early childhood education
“Public funding for the sector remains strong, having risen from $ 860 million in 2008 to $ 1.63 billion at present. The proportion of children enrolled in early childhood education is now 96.6 per cent as opposed to 93.6 per cent in 2008. This shows that the industry is experiencing a constant trend of steady, reliable growth with a national average of 152 ECE centres opening each year.”
Reardon says childcare centres provide an opportunity for smaller investors to get hold of a reasonably priced, long- term, passive investment.
“They are sought after and tightly held, which results in the centres that are put on the market being snatched up by an investor pool that i s just waiting for the opportunity. This leaves few options for other investors wanting to enter the market other than buying brand new builds or developing their own.”
Blockhouse Bay and the greater Mt Roskill area have seen some upgrades and developments including the Waterview Tunnel and shopping centres along Stoddard Rd, which bode well for the increase of population and traffic in the suburbs. Blockhouse Bay and Mt Roskill house many families who work in the city or surrounding commercial hubs. “This creates a strong opportunity for schools and childcare centres so children can be dropped off and collected as close to home as possible.”