New childcare centre in wealthy suburb boasts long-term lease
A new childcare centre, prominently placed in the wealthy Auckland suburb of Coatesville, offers the opportunity to secure a stake in one of the country’s most sought-after asset classes.
302 Coatesville-Riverhead Highway is home to a 598sq m early childhood education centre on a 1968sq m freehold site zoned Business–Neighbourhood Centre under the Auckland Unitary Plan.
New Shoots Children’s Centre is the tenant, and the facility, which is consented for 95 children, will be operational before the end of the year. New Shoots has an initial lease term of 18 years with two further rights of renewal for six years each leading to a final expiry of October
2052.
The lease agreement provides $321,100 plus GST in annual rental income and there are annual CPI reviews and four-yearly market rent reviews in place.
Coatesville is an affluent rural community approximately 30km northwest of central Auckland and the property is located near local cafes, a market and school.
Colliers directors Shoneet Chand, Matt Prentice and Jimmy O’Brien are marketing the property for sale by deadline private treaty closing at 4pm on Wednesday 26 October, unless sold prior.
Chand says the length of the lease term will be highly appealing for buyers looking to acquire a passive investment with a strong tenant covenant.
“New Shoots occupies 17 sites across the North Island and are highly respected in the early childhood education sector due to their integrity and community-focused approach.
“With a long-term lease in place and annual CPI reviews, the property provides outstanding investment fundamentals and continued rental growth.
“Childcare centres are a keenly sought investment among buyers and this property would make an outstanding addition to any portfolio.”
Prentice says the property shapes as a low maintenance asset that has been expertly crafted.
“Designed with the area’s rich history of kauri logging and gumdigging in mind, the centre’s interior decor boasts warm earthy tones and natural materials.
“The building is passively designed for natural light and ventilation and like all of New Shoots’ centres, it has been developed by architects and spatial designers.”
Coatesville has experienced continuing population growth during the past 15 years and had an estimated population of 2480 in 2021. O’Brien says the centre will provide excellent service to a rapidly expanding community.