City childcare centre ordered to move out

Celcilia Chan with her three year old son Derek at Kindercare's earlychild hood learning centre. Photo / Greg Bowker

A 20-year-old childcare centre at the base of the ANZ Centre in downtown Auckland is to be demolished to make room for bank expansion.

Parents and staff at the Kindercare centre on Albert St were dismayed to learn last week that they would have to be out by early October.

The building's landlord, AMP NZ Office, has announced a $76 million refurbishment of the premises and has signed the main tenant ANZ on a lucrative 15-year lease over 18 floors.

The Kindercare building and the neighbouring courtyard will be turned into a new pavilion lobby and entrance, including meeting space for the ANZ.

Tim Newman has a son at the kindergarten and set up a Twitter and Facebook page to draw attention to the demolition. ANZ has told him the issue is between Kindercare and its landlord only.

Cecilia Chan and her 3-year-old son Derek will be affected more than most by the closure.

Derek was diagnosed with autism after starting at the centre about a year and a half ago, and Mrs Chan said the care and familiarity of the staff had made a difference to his behaviour.

"When he first came he'd be crying, not looking or communicating with anyone. But now he'll see the teachers and the teacher aide and give them a hug. You can see him now, he's a happy boy.

"But I can't imagine what's going to happen once that change has happened. Because everything is going to be new."

Centre director Natalie Rabaud said their 55 families would be seriously disrupted by the change. She couldn't understand the rationale for it, as many of the children had a parent working for ANZ.

"All the research shows staff with childcare onsite are less stressed, and take fewer days off work ... it seems crazy."

ANZ became AMP NZ Office's largest customer after renewing its lease, and the bank's retention added $20 million to the commercial landlord's valuation when it was projected last year.

AMP NZ Office chief executive Scott Pritchard said it was disappointing that Kindercare's lease could not be renewed, but it had been aware of that possibility for some time.

The kindergarten had been on a month-by-month lease since May last year, and any offers of a longer-term lease all contained a six month demolition clause.

"We have been communicating our desire to redevelop the site for a long time ... it surprises me a little bit that it has come as a surprise to them."

But Kindercare's general manager, Kelly Wendelborn, said he believed negotiations to remove or extend the clause had been going well and the news came as a shock.

He said Kindercare was never consulted about whether it could be incorporated into the refurbishment.

Efforts would be made to find places for the children at the company's Customs St branch, or at city-fringe locations such as Grey Lynn. It was hoped most of the kindergarten's 10 permanent and six part-time staff could be moved to other Kindercare locations.

"And we are searching in earnest for another inner city property which is suitable to be developed."

That would be difficult to find by October because of Ministry of Education outdoor space requirements, fire safety issues, and the high cost of rent, he said.