Childcare centre properties target passive investors
The land and buildings housing a pair of purpose-built childhood care centre business in suburban Auckland are on the market.
The separately owned premises have long leases in place and are being targeted at passive property investors.
The bigger of the two, is at 58 Ormiston Rd, Flat Bush, South Auckland, contains a 1212sq m childcare centre and a separate 476sq m firstfloor premises used as the centre’s head office.
Occupied by ChoiceKids, the land and buildings are for sale by tender through Bayleys Manukau, with tenders closing on March 13. Salespeople Tony Chaudhary, Amy Weng and Janak Darji said the Ormiston Rd property housed one of eight ChoiceKids sites in South Auckland.
Choicekids Ormiston Rd Ltd is on a lease running through to 2035, with two further 10-year rights of renewal, generating annual net rental of $374,400 plus GST and outgoings.
Parent company Choicekids Childcare Ltd tenants the office space on a lease through to 2029 with two further 10-year rights of renewal, generating annual net rental of $100,000 plus GST and outgoings.
Chaudhary said the Ormiston Rd site was one of New Zealand’s biggest childcare centres — with multiple play zones and covered activity areas, as well as sealed car parking for 41 vehicles — comparable in size to a suburban shopping centre.
The buildings and infrastructure sit on some 5209sq m of freehold land, close to a vacant 825sq m section included in the sale.
“The main childcare building and office is built on concrete foundations and constructed of fibre cement external cladding, aluminium exterior joinery and iron roofing,” said Chaudhary.
“The open plan internal layout features multiple activity rooms, toilets and changing rooms, sleeping rooms, staff amenities, laundry and resource room, while the upper floor contains seven individual offices, boardroom, storage room, bathrooms and a kitchen.”
A staircase and internal lift connect the two levels. The childcare facility is licensed for up to 150 children. Neighbouring properties feature semi-commercial and light industrial buildings.
On the other side of Auckland, the Hand and Hand childcare business, at 21 Park Hill Rd, Birkenhead, is for sale at auction on March 11.
Bayleys salespeople Jarrod Qin, Nicolas Ching and Michael Nees said the premises, purpose-built in 2017, included a dual entrance driveway to a sealed parking area, and perimeter fencing.
The Hand and Hand business has sister branches in Beachlands, Flat Bush and Hobsonville.
Hand and Hand is on a 15-year lease at the Birkenhead location through to 2035 with a further sixyear right of renewal. The tenancy generates annual net rental of $95,550 plus GST.
The single-storey 178sq m building sits on some 716sq m of freehold land and has been certified as 100 per cent compliant with New Building Standards (NBS). It is licensed for up to 35 children.
Qin said the site is between the residential suburb of Birkdale, and the employment hubs of Northcote, Takapuna and Wairau Park.
Bayleys commercial and industrial director, Ryan Johnson, said population growth had been one of the key drivers of demand for childcare places. “That is one of the reasons childcare venues have proliferated in suburban locations, along with the cheaper per square metre rates for land and buildings,” he said.