Childcare investment in affluent Beachlands
A highly visible childcare centre in the affluent Auckland suburb of Beachlands provides prospective purchasers with the opportunity to acquire a top-quality asset with a strong tenant covenant.
49 Third View Ave, Beachlands, has 322sq m of total floor area on a
1011sq m site zoned Business–Light Industry under the Auckland Unitary Plan.
Small Fries Christian Childcare Centre is licensed for 40 children. The tenant is in the early stages of an initial
12-year lease that expires on 31 December 2032 and includes further rights of renewal and regular rent reviews. Annual rental income is $85,000 plus GST and there is an upcoming CPI review.
The site has nine carparks for occupants and the property can be easily accessed from the street.
Colliers brokers Ronal Prasad and Logan Roach have been appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 7 September, unless sold prior.
Prasad says Small Fries is a highly respected childcare centre operator with another centre in Windsor Park, North Shore. “Small Fries Christian Childcare Centre was developed by Windsor Park Baptist Church as part of its larger vision to serve families in their local area,” he says. “Teachers know the children and families well, and a culture of care and kindness is evident.”
Roach says favourable lease terms underpin the strong tenant covenant. “On top of the existing 12-year lease, there are two further rights of renewal for six years each leading to a final expiry of 30 December 2044.
“The lease agreement also includes CPI increases every two years and a market rent review every six years, which will be highly attractive to buyers who will be able to enjoy built-in rental growth in the future. Childcare centres are a highly sought-after asset class with tremendous investment fundamentals.”