A purpose-built childcare centre in Tauranga’s booming residential growth hub of Papamoa is for sale with a new 10-year lease.
Completed earlier this year, 32-38 Te Wharo Dr and 20 Hills View Dr comprises an ultra-modern childcare centre with resource consent for up to 100 children.
It is ideally located in a seaside location popular with young families and surrounded by one of the fastest-growing residential populations in the country.
Local childcare operator Above and Beyond occupies the property on a new 10-year lease returning net annual rent of $230,000 plus GST and outgoings.
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Colliers International is marketing the property for sale by deadline private treaty, closing at 4pm on Thursday, July 25, unless sold earlier.
Broker Mathew Gibbard says it is a chance to acquire a worry-free investment with outstanding fundamentals. “This property has everything a passive investor could ask for,” he said.
“It offers a stellar growth location, strong tenant covenant and a long-term lease, underpinned by a stable growth industry.
“Savvy investors will immediately appreciate the offering’s security of income, balanced with the potential for future rental growth.
“Throw in the building’s low-maintenance construction, stunning fit-out and immaculate condition, and it really is the full package.”
The property comprises a 507sq m building on a 2209sq m site, with a huge 880sq m outdoor play area and ample parking.
Grant White, of Colliers Tauranga, says the facility is split into zones for infants, toddlers and preschool children, each with access to the outdoor play area.
“The infant area is self-contained with its own changing room, sleeping area and kitchenette.
“The toddler and preschool areas share a kitchen but have their own toilets. The toddlers also have their own sleeping room.
“The front of the building has a reception area, management office, staff facilities and toilets. A freestanding garage is at the eastern end of the property.”
The Residential-zoned property has dual street frontages and is surrounded mostly by new-build housing.
Tenant Above and Beyond Papamoa Ltd is on a new lease with market reviews every three years, plus the option for the landlord to apply a CPI rent review formula to any market review.
Above and Beyond is a locally owned and operated early childhood education provider with five locations throughout Tauranga, including the newly finished Papamoa centre.
It provides an arts-based learning programme in a home-like, family environment, with teacher-to-child ratios higher than Ministry of Education requirements.
Papamoa is Tauranga’s largest suburb. Its population has grown by 20 per cent since 2006 and is expected to almost triple in the next three decades, to almost 60,000.
Future development in the area is projected to include 17,500 new homes, 450ha of industrial development and 100,000sq m of new commercial and retail development.
This is expected to contribute $87.5 billion to the Western Bay of Plenty economy.
Papamoa is well known for its fishing, surfing, regional park and 16km white sand beach, which stretches to Mount Maunganui in the west and the Kaituna River in the east.
The wider area is becoming increasingly affluent, having transformed from a predominantly holiday location to a full-time residential area servicing wider Tauranga.
It is 20 minutes’ drive to both Mount Maunganui and Tauranga.
