A newly completed childcare centre in the South Auckland growth hub of Pukekohe is for sale as a tenanted investment on a new 15-year lease.
The property at 93-97 Victoria Street comprises a premium-grade, purpose-built childcare facility, fully leased to a highly experienced industry operator.
Shoneet Chand, Director of Colliers International's Investment Sales team, says the property has strong fundamentals across all key investment criteria.
"This offering boasts a 15-year lease from December 2019, fixed rental growth, proven tenant covenant, and a brand-new building in a high-growth Auckland location.
"The building was consented by market-leading childcare development company Establish and constructed by reputable developer Signature Homes.
"It is tenanted by Kiddie Academy Limited – an established childcare operator with more than five licences and a growing roll of over 700 children.
"The property returns $308,880 in net annual rent, with fixed rental growth of 2 per cent annually and market reviews every five years, capped at 10 per cent.
"All of these elements make it an ideal long-term, passive investment that must be seriously considered."
The property is for sale through Colliers International by way of deadline private treaty. Offers close at 4pm on Thursday 12 December, unless it is sold earlier.
Colliers Director Matt Prentice says the modern, low-maintenance building is consented for 110 children and designed to the highest industry standards.
"The building has a net lettable area of 647.8sq m including age-separated play areas, a modern kitchen, child and adult bathrooms, and a staff office.
"It was built-for-purpose with hard-wearing floor surfaces, double-glazed safety glass, and plumbing fixtures specifically catered to childcare centre requirements.
"The building sits on a 2,028sq m freehold site, spanning two titles, with 21 on-site car parks. The large landholding, zoned Residential Mixed Housing Suburban, provides underlying value."
The property's builder, Signature, has delivered more than 140 childcare developments since 2002 and has been the Ministry of Education's preferred builder of childcare centres for the best part of a decade.
"With such strong developer credentials, backed by solid tenant covenant, this is a truly outstanding long-term property investment."
Matthew Barnes, Colliers' South Auckland Director of Investment Sales, says the tenant is one of many quality centres that experienced operator Steven Xue has been involved with.
"Steven has more than 13 years' experience in developing and operating early childhood centres in New Zealand. He is also finalising a doctoral degree specialising in cultural responsiveness in governance within the sector.
"Steven's in-depth understanding of early childhood education, as well as what it takes to run a successful business, has led to strong growth across the Kiddie Academy group.
"Successful brands under Steven's umbrella include Appleseed Educare, Giraffe Early Learning Centre and Happy Tots Childcare."
Barnes says the centre is superbly located in an established residential area just under 1.5km west of Pukekohe's CBD.
"Pukekohe has been identified by Auckland Council as a priority satellite town and is anticipated to grow to a population of 50,000 by 2040 – more than double its current 21,000 residents.
"To facilitate this growth, the Pukekohe Area Plan allows for growth in the future urban zone, enabling at least 100ha of new business land, supporting land development and more."
Pukekohe is located about 50km southwest of Auckland's CBD. It services its own growing population as well as the wider Franklin District, including the growth hubs of Waiuku, Pokeno, Tuakau and Karaka.
It is only eight minutes from State Highway 1, putting it within 45 minutes of Auckland's CBD via car.
Pukekohe can also be accessed via SH22 from Drury, which is earmarked for substantial industrial, commercial and residential growth.
The Pukekohe Train Station is centrally located off Manukau Road, a main urban road through town.
Regular services provide an easy commute into Auckland's CBD, which is an hour and 10 minutes from Britomart via train.
Pukekohe is home to many hospitality operators, national retailers, trade outlets, education facilities, industrial occupiers and sporting clubs and facilities.