Childcare centre building goes up for sale
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 keen investor buyers.
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 trend in a property market 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 several 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 Petone.’’
The centre, which is licensed for 90 children, includes a singlelevel building with four main internal areas. There are also outdoor play areas and car parking.
The childcare sector had grown strongly, 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.’’