Premium childcare, cafe investment
A near-new childcare centre and cafe is for sale in Auckland’s popular Pacific Rise business park, providing a chance to acquire a premium-grade passive investment with development potential.
The purpose-built property, at 3 Pacific Rise, Mt Wellington, comprises an architecturally designed, low-maintenance building on a large freehold site with 26 car parks.
It is tenanted by a established childcare operator and a hospitality business with a weighted average lease term of 11.4 years.
The leases return $369,457 in split-risk annual income with all normal operating expenses recoverable as outgoings.
The property is on a 2295sq m site and has favourable Business Park zoning, which allows development up to 21m.
Colliers International brokers
Shoneet Chand, Kris Ongley and Simon Child have been appointed to market the property.
Offers by way of deadline private treaty close at 4pm on Wednesday, December 4 unless the property sells earlier.
Chand says the property is superbly located. “There’s been enormous growth in Mt Wellington in recent years, highlighted by Kiwi Property’s expansion of the nearby Sylvia Park shopping centre and office development.
“The sale of 3 Pacific Rise is a chance to acquire a premium investment in this sought-after location, which boasts top national and multinational tenants including BMW, Mercedes Benz, Ecolab and Geneva Finance.
“It is anchored by experienced early childhood education provider Lightbulb Learning, which has a strong trading history and a current 80 per cent occupancy. The rental income is supplemented by cafe tenant Hamlin Eatery.
“The property was designed and constructed to the highest industry standards of sustainability by award-winning Collingridge and Smith architects and built by LEP Construction.
“As a long-term passive investment with future upside potential, this is an asset of the very highest quality.”
Ongley says the property comprises a 700sq m building on a large site with abundant sealed car parks.
“The childcare centre of 550sq m has age-separated playrooms, central facilities and a atrium-like hallway.
“It is licensed for 100 children, including 20 aged under two. A northwest-facing outdoor play area of 450sq m adjoins a large deck of 100sq m.
“The cafe is an attractive, modern space of minimalist design with polished concrete floors and floor-to-ceiling glazing.
“It has a total indoor area of 147sq m plus a north-facing outdoor seating area of some 78sq m.
Lightbulb Learning occupies the childcare facility and 19 car parks on a 15-year lease from November 2017, expiring in October 2032.
The lease returns $283,616.24 in net annual rent. There are three rights of renewal of six years each, with final expiry in October 2050.
Every second year the rent increases automatically by the greater of CPI or +2 per cent of the current rent.
Then every sixth year the rent is subject to a market review with a ratchet in place to the current rent and a cap at +5 per cent.
Hamlin Eatery occupies the cafe and seven car parks on an eight-year lease from November 2017, expiring in November 2025.
The lease returns $85,842.80 in net annual rent. There are three rights of renewal of four years each, with final expiry in November 2037. Rental reviews are to CPI plus 2 per cent annually.
The property is next to both of Auckland’s busiest arterialS, State Highway 1 and Great South R d.