Fifteen-year lease to Montessori childcare centre
Featured in Bayleys’ latest Total Property portfolio, a property for sale at Waiuku features a modern childcare centre.
The freehold property — Cnr Valley Rd and Rossiter Ave — comprises 200sq m of floor space on 1047sq m of land. A new 15-year lease to Waiuku Montessori, with two 10-year rights of renewal, will generate a net rental income of $104,000 a year net. Rental growth is fixed at 2.5 percent a year.
Bayleys sales agents Tony Chaudhary, Amy Weng and Shane Snjider are marketing 8 Valley Rd for sale by deadline private treaty, closing at 2pm on Wednesday May 9, at 2 Harris Rd in East Tamaki.
Chaudhary says the childcare centre occupies a modern building that has been extensively redeveloped from its former use, a community hall. The operator is Waiuku Montessori Limited, who is part of ChuChu Train Educare Limited, and is an experienced operator.
“Alterations include timber decking around the extension and moving the main entry from the southern side of the building to the western side.”
Chaudhary adds the internal layout provides for a staffroom, kitchen, laundry, sleep room and separate baby and toddler zones and amenity areas. There are linked indoor and outdoor play areas, with the latter enclosed by a 1.8m-high acoustic fence, and site has ten parking spaces, including one mobility space.
The centre is licensed for 40 children — ten aged under two years and 30 aged between two and five years.
Snijder says the property is predominantly surrounded by reasonably intensively developed residential properties. Waiuku town centre is about 600m to the northwest and the property is within easy driving distance of the town’s schools.
“As a result of recent rezoning, Waiuku has undergone a major transformation, with strong growth in both residential and commercial development and has become a popular service area in the Frankton district,” Mr Snijder says..
“It’s among several destinations of preference for residential purchasers who have been locked out of the expensive central city housing market and are prepared to make the commute into Auckland for work in order to get a foot in the property market.”
Weng says there has been considerable expansion in the demand and level of services for early childhood care education throughout New Zealand, reflecting not only the Government’s focus on its value but also the increasing demand from parents for preschool care and education options.
“Early childhood education (ECE) is an in-demand sector for commercial property investors. “It is viewed as more secure than other asset classes, because of not only the strength of the leases involved but
also New Zealand’s high childcare participation rate,” she says.
Public funding for the sector is reliable and secure, rising from $860 million in 2008 to almost $1 billion now.