Childcare, cafe land and building

The Pakuranga site at 6/85 Ben Lomond Crescent houses one of Auckland's largest childcare centres, plus a cafe. Photo / Supplied

The land and buildings housing one of Auckland's largest and most modern childcare centres has been placed on the market for sale.

The purpose-built property at 6/85 Ben Lomond Cres, Pakuranga, houses New Shoots Childcare Centre and the adjoining Source Cafe. The single-level property generates combined annual rent of $420,973 net and outgoings. The premises was constructed in 2016, having been certified as 100 per cent compliant with New Building Standards (NBS). It is licensed to accommodate up to 115 children daily.

The 756sq m daycare and cafe building sits on 1899sq m of freehold land (on a cross-lease title), with car parking for 33 vehicles. New Shoot's portion of the building encompasses a substantial outdoor play area containing climbing structures, obstacle courses, grassed areas, and sandpit.

The property, but not childcare or cafe businesses operating there, are being marketed for sale by private tender through Bayleys Manukau, with tenders closing at 4pm on Wednesday June 27. The property features in Bayleys' latest Total Property portfolio.

Bayleys Manukau salespeople Shane Snijder and Dave Stanley say the near-new quality of the property and its high standard of amenities and play zones is excellent.

"The fully fenced perimeter keeps children as secure and allows for a park-like view over the neighbouring wetland surrounding Cascade Creek," Snijder says.

"Inside, the open-plan layout — and design themes of the play space zones, reception areas, staff amenities, food preparation facilities, and bathrooms — mirror a modern, proven templated model deployed across the New Shoots group. The expansive sealed car parking yard makes it as easy and safe as possible for children to be dropped off and collected."

New Shoots is on an 18-year lease — with two further six-year rights of renewal — paying net rent of $345,973 per annum. Rent increase are fixed at 1.5 per cent annually, with market reviews every four years. The company is a major operator in the pre-school childcare sector, also having sites in Auckland, Hamilton and Tauranga.

Source Café is on a five-year lease at 6/85 Ben Lomond Cres, with two further five-year rights of renewal, paying net rent of $75,000. Rental reviews are undertaken every two years.

"Source Cafe draws a core clientele from parents dropping-off and picking-up children from neighbouring New Shoots throughout the day. It also serves employees at numerous businesses working light industrial premises nearby. It's a mutually-beneficial and totally sustainable business model for the cafe operator," says Snijder.

Since 2008, both the proportion of Kiwi pre-schoolers enrolled in early childhood education (ECE) plus the time they spend there have risen. The number of children is up from 93.6 per cent to 96.6 per cent. Time spent in ECE has reached an average of 21.7 hours-a-week, up from 13.5 hours in 2000.

The Government fully funds 20 hours of care a week for all children aged three, four and five. Auckland has around 1407 ECE centres.

Stanley says New Shoots Pakuranga is in a fast-growing area zoned Business-Light Industrial. "Many factories, warehouses and retailing sites have staff with young families requiring day care."