The land and buildings leased by a Hamilton childcare centre are for sale at a fixed price of $3.3 million.
ABC Business Sales broker Linda Harley says Old Macdonald's Rural Education and Care Centre has signed a 15-year lease for the purpose-built centre at 584B Ruakura Rd, Newstead, commencing the day of settlement.
The lease, which has further rights of renewal, will bring in $185,000 plus GST per year and offers buyers a 5.6 per cent return based on the starting rental, says Harley.
She says the centre's owners, husband and wife Tracey and John Aubin, wanted to provide childcare services which offered a home away from home in a wholesome, natural environment with lots of fresh air, animals, and the freedom for children to express themselves.
"They are the owners who established the business with a philosophy to provide city children with a rural learning environment," says Harley.
"Tracey was a midwife and has a passion for quality care of children and families. John is a builder and completed the construction to the high standard."
Harley says this is one of Hamilton's leading centres because of its strong, high-quality care of children, and the centre's point of difference is the animals and philosophy.
"The property has paddocks for ponies, sheep, donkeys, ducks and chooks. The children learn about caring for animals and have the opportunity to attend riding lessons.
"In spring they even experience lambing with ewes bought in so the children can experience a true cycle of life and see new lambs being born."
The business has a licence for 74 children but the premises have been built to accommodate up to 118 children should the tenant wish to expand in the future (subject to resource consents).
"Established in an expanding rural residential location in Ruakura Road, this centre offers city children a rural learning experience, and, given the tenant's track record with a full centre and long waiting list, the business is definitely meeting the needs of the community."
As with any commercial investment property the tenant is key, Harley says.
"An investor can take comfort from the exceptional business model that the Aubins have created.
"They have a proven track record and continuous waiting list for new enrollments to attend the centre.
"They are also operating a farm and bush school for primary-aged children which adds to the popularity of the centre."
Opened in January 2016, the buildings are about 500sq m in size and are built with robust materials including corrugated iron and concrete and cedar finishes which means low maintenance costs for the tenant and the future property owner.
The complex includes a substantial building with baby, toddler and pre-school rooms, together with a central, semi-enclosed play area and associated offices and amenities.
Three large separate rooms, all with fireplaces, offer a homely rural ambience. The substantial outdoor areas include numerous covered play areas, playgrounds and there is a heated in-ground swimming pool enabling swimming lessons for six months of the year.
"This substantial property is an 8055sq m rear site and conveniently located near the corner of Morrinsville Road (State Highway 26) and Ruakura Rd, just southeast of Hamilton City.
"The location is 4km from Hillcrest, 3.7km from the University of Waikato and 7km from Hamilton City.
"The location is also close to the new motorway and inland port being developed within 1.5km from the property."
Harley says the new owner of the property can take advantage of the capital growth potential through future licence expansion, subject to resource consent, and a modern, low maintenance building.
"This tenant has a proven track record and business model that ensures a full centre with waiting list in place offering the new owner peace of mind.
"The tenant is committed to long-term, high-quality care of children and she is in it for the right reasons."
This distinctive property is something any owner would be proud to include in their property portfolio, says Harley.