"With a new 20-year lease, rights of renewal totalling a further 20 years, net rental income of $228,800 a year, annual rental growth, and with bank and personal guarantees in place, this property has all the makings of a solid long-term commercial investment," Chand says.
"Combined with its location in a well-established suburb serving a large residential catchment, we believe this property is a very compelling investment proposition."
Tom Tuke, director of Aubrey Edward Group, which is developing the property for Discoveries Educare, says the building is being constructed on the shell of a light industrial structure that was on the site.
"We purchased the existing warehouse and took it back to a shell which has been extended and extensively renovated with a new roof installed. It will be ready for opening as an 'as-new', purpose-built facility," Tuke says.
The building contains three interior play areas, a sleep room and amenities. Wrap-around decking with canopies, as well as extensive outdoor play areas with sandpits, vegetable garden, water features and shade sails are provided in the landscaped and fenced exterior area.
Parking is also provided on site.
Prentice says Discoveries Educare is a proven and established childcare operator.
"Discoveries Educare began operating in 2009 with a centre at Manurewa. This has expanded to five centres with this property to become the sixth, and the business also provides a home-based childcare service. The business has grown significantly since it was established and now caters for almost 500 children."
The property occupies a prominent position on the corner of Target Rd and Target Court in the heart of the Wairau Valley, surrounded by extensive residential and commercial areas. A flagship Big Save furniture store is also being developed on a neighbouring site.
"The property is within minutes of Wairau Rd and the State Highway 1 on- and off-ramps," says Prentice. "Wairau Rd is a major arterial giving a direct motorway connection close to the property and making it the ideal location for city commuters to drop off and pick up their children on their way to and from work."
Chand says it's not only the favourable position of the site that makes the property an appealing investment.
"The high growth in the Wairau Valley area means there has never been a better time to get hold of commercial property in the vicinity. It is a very tightly held area with business service providers benefiting from the nearby Smales Farm Business Park, North Shore Hospital and affluent residential areas such as Takapuna, Milford, Northcote, Glenfield, Beach Haven and Birkenhead."
Nearby occupiers include retail and trade occupiers, and there are also several larger industrial buildings in the area. Many large-format retail stores and supermarkets have opened nearby, leading to substantial associated commercial development.
