Hobsonville early learning centre boasts long lease
A childcare centre in Hobsonville with a long-term lease is being presented to the market, offering buyers the opportunity to secure a passive investment with a steady rental stream.
327 Hobsonville Rd is a large centre with 700sq m of floor area on a
3508sq m site. The property is zoned Residential–Mixed Housing Urban under the Auckland Unitary Plan.
Tenanted by Real Kids Early Learning Centre, the occupants have a
15-year lease in place that runs until
2039 with two further rights of renewal for 10 years each, leading to a final expiry of 2059.
Current net annual rental income is $405,600 plus GST and there are 2 per cent annual rental increases as well as market reviews every five years.
The property is located moments from the key SH18 interchange linking West Auckland to the North Shore, Auckland Airport and CBD.
Colliers brokers Ronal Prasad and Shoneet Chand are marketing the property via deadline private treaty closing 4pm, Wednesday May 22, unless sold prior.
Originally used as a conference centre, the property has been converted to a childcare facility and is licensed to accommodate 130 children, including 40 under two years.
The premises boasts a high-stud ceiling, dedicated rooms and a natural outdoor area.
Prasad says there are multiple appealing aspects to this investment opportunity, which is underpinned by a strong tenant covenant.
“Real Kids is a family-owned business that has provided premium
childcare services to the Hobsonville community since 2015,” Prasad says.
“This early childhood learning centre consistently maintains exceptional occupancy rates, supported by their excellent Education Review Office ratings. Their aim is to be the best choice for parents who seek a nurturing child and learning-focused centre that helps develop confident, resilient, creative, responsible, and respectful children.”
Hobsonville has experienced significant growth during the past decade through major housing developments in the area and upgrades to commercial services.
Surrounding suburbs such as West Harbour, Massey, Hobsonville Point and Westgate have undergone notable changes through major commercial and industrial development.
The broader West Auckland area is continuing to expand and is now a popular home for well-known national and international brands.
The family-friendly nature of Hobsonville has seen further education facilities being built in the area, including primary and secondary schools, while neighbouring Hobsonville Point has extensive green spaces and opportunities for recreation.
Chand says the favourable lease terms will draw investor interest.
“Childcare centres have become an appealing asset class for discerning investors due to the lengthy lease agreements in place and strong fundamentals.
“The built-in rental growth attached to this property through fixed annual increases adds another layer of appeal,” Chand says.
“Given we have had nearly a year of a stable OCR with no movement, buyers are now able to cost their capital accordingly. There is strong underlying land value in this property and buyers with a long-term view may see future development potential.”