A childcare centre in Hobsonville with a long-term lease is being presented to the market for sale and offers buyers the opportunity to secure a passive investment with a steady rental stream.
327 Hobsonville Road, Hobsonville is a large centre with 700sq m of floor area on a 3,508sq m site.
The property is zoned Residential – Mixed Housing Urban Zone under the Auckland Unitary Plan.
Tenanted by Real Kids Early Learning Centre, the occupants have a 15-year lease in place that runs until 2039 with two further rights of renewal for 10 years each leading to a final expiry of 2059.
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The current net annual rental income is $405,600 plus GST and there are 2 per cent annual rental increases as well as market reviews every five years.
The property is located moments away from the key State Highway 18 interchange seamlessly linking West Auckland to the North Shore, Auckland Airport, and the Auckland CBD.
Colliers Brokers Ronal Prasad and Shoneet Chand have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 22 May, unless sold prior.
Originally used as a conference centre, the property has been converted to a childcare facility and is licensed to accommodate 130 children, including 40 under two years of age.
The premises boasts a high-stud ceiling, dedicated rooms, and a natural outdoor area creating a comfortable environment for children and their carers.
Prasad, Investment Sales Broker at Colliers, says there are multiple appealing aspects to this investment opportunity, which is underpinned by a strong tenant covenant.
“Real Kids is a family owned business that has provided premium childcare services to the Hobsonville community since 2015,” Prasad says.
“This early childhood learning centre consistently maintains exceptional occupancy rates, supported by their excellent Education Review Office ratings.
“Their aim is to be the best choice for parents who seek a nurturing child and learning-focused centre that helps develop confident, resilient, creative, responsible, and respectful children.”
Hobsonville is a location that has experienced significant growth during the past decade through major housing developments in the area and upgrades to commercial services.
Surrounding suburbs such as West Harbour, Massey, Hobsonville Point, and Westgate have also undergone notable changes in recent times through major commercial and industrial development.
The broader West Auckland area is continuing to expand and is now a popular home for well-known national and international brands.
This was underscored by American retail giants Costco setting up their first New Zealand store in West Auckland in 2022.
The family friendly nature of Hobsonville has seen further education facilities being built in the area, including primary and secondary schools, while the neighbouring Hobsonville Point has extensive greenspaces and opportunities for recreational activities.
Chand, Director of Investment Sales at Colliers, says the favourable lease terms of the subject property will draw the interest of investors.
“Childcare centres have become an appealing asset class for discerning investors due to the lengthy lease agreements in place and strong fundamentals.
"The built-in rental growth attached to this property through fixed annual increases adds another layer of appeal,” Chand says.
“Given we have had nearly a year of a stable OCR with no movement, buyers are now able to cost their capital accordingly.
"There is strong underlying land value in this property and buyers with a long-term view may see future development potential.
“This is a compelling investment opportunity that will serve as a strong addition to anyone’s portfolio.”
- Supplied by Colliers
