The modern premises housing an established childcare centre have gone up for sale in a North Shore town centre where demand is growing due to residential intensification.
Palms Educare in Browns Bay is licensed for 97 children. It sits within a popular retail complex beside major tenants such as Woolworths, Snap Fitness and St Pierre’s Sushi.
The purpose-built, single-level facility of some 514 square metres is fully leased to Choice Education Limited, trading as Palms Educare.
The site generates an annual net rental return of $262,278 plus outgoings and GST, on a current lease that runs through to 2030 with two further six-year rights of renewal. The lease agreement incorporates annual rent reviews to CPI, or 1.5 percent annual increases, whichever is greater.
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The unit-titled property at 8/26 Anzac Road, Browns Bay, Auckland, is being marketed for sale by Tony Chaudhary and Michael Nees of Bayleys Real Estate.
It will be sold by deadline private treaty closing on Wednesday 30 October, unless sold prior.
Chaudhary said the approximately 514-square-metre property was designed and purpose-built for optimal use as a childhood education facility.
“The centre is configured with a reception lobby/entry foyer, kitchen, staffroom and office, along with three separate activity rooms, a sleep room, storeroom, staff bathroom, laundry and two children’s bathrooms. The activity rooms open onto covered play areas enabling a easy flow into outdoor activities,” Chaudhary said.
The property was constructed in 2014/2015 with concrete foundations and floor slab supporting a timber frame with fibre cement panel and feature weatherboard cladding, double glazed windows, aluminium joinery and metal roofing.
There is plenty of shared parking in the adjacent carpark and the area is well served with public bus services.
Town Centre zoning under Auckland’s unitary plan is designed to provide a focus for commercial activities and growth. It permits an array of activities, from commercial and residential to tourist, cultural, community and civic services.
Chaudhary said Browns Bay’s town centre had been rejuvenated in recent years with an influx of new service-based retailers and hospitality operators catering to population growth driven by immigration and the area’s large Chinese, Korean and South African communities.
“A lot of the new operators are of a high quality, adding amenity consistent with the new demographic that will occupy the area’s proliferating new apartment developments, such as The Victor and The Pines,” Chaudhary said.
The Kauri Residences complex completed recently on a neighbouring site contains 48 apartments and five luxury penthouses.
Nees said the property for sale was well placed to benefit from growth in childcare demand driven by this ongoing residential intensification.
“Being neighboured by two supermarkets and within three minutes’ walk of Browns Bay Beach adds further to the attractiveness of this strategic location,” he said.
Nees said childcare was attracting increasing attention as an appealing long-term commercial property investment.
“Investors in childcare premises enjoy an added confidence in their returns that comes from knowing that a large portion of the fees payable to operators are government-funded.
“The sector received a fresh shot in the arm from 1 July with the Government’s new FamilyBoost payment of up to 25 percent of households’ weekly childcare fees,” said Nees.
- Supplied by Bayleys
