The land and buildings of nine childcare properties across major cities in New Zealand are being presented to the market for sale.
The properties can be purchased either individually or as a nationally diversified portfolio, opening the opportunity to all levels of investors.
The portfolio of properties includes one centre in Whangarei, four in Auckland, one in Hamilton, one in Wellington, and two in Christchurch.
BestStart Educare is the tenant and the company’s nationwide network of more than 270 early childhood education centres cares for more than 15,000 children each day.
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The total net annual rental income from the combined portfolio is $2,049,060 plus GST with each individual centre producing between $124,800 to $382,200 plus GST per annum.
There is 16,317sq m of total combined land area underpinning significant value for these investments, while the portfolio is licensed for 763 children.
The sale and leaseback of the properties will include a brand new 12-year lease with multiple rights of renewal and a final lease expiry of 2052. This portfolio of centres also includes fixed annual rental growth of 2 per cent and market reviews every four years.
Colliers Brokers Shoneet Chand, Matt Prentice, and Ronal Prasad have been exclusively appointed to market this portfolio of childcare centres for sale by deadline private treaty closing at 4pm on Wednesday 30 November, unless sold prior.
The property at 460a Maunu Road in Whangarei comprises two separately licensed, purpose-built childcare centres that are held under a single Record of Title.
To the rear of the property is a structure built in the late 1990s that is licensed for 80 children. Adjoining is a separate new building that is licensed for 70 children.
The four properties in Auckland are located at 2 Coronation Road, Papatoetoe (licensed for 50 children), 174 Ridge Road, Howick (47 children), 2 Barrels Close, Kumeu (91 children), and 504 Porchester Road, Takanini (110 children).
The Hamilton centre is at 48 Powells Road, Fairview Downs and is consented for 50 children.
The Wellington property is located at 162-168 Hutt Road, Kaiwharawhara and is licensed for 100 children.
The Christchurch centres are at 150 Salisbury Street in the city centre and 95-99 Wainui Street, Riccarton and are consented for 66 and 99 children, respectively.
Chand, Director of Investment Sales at Colliers, says early childhood education centres are an attractive asset class for buyers.
“These properties are all strategically located in key hubs in their respective towns and cities meaning there will be continued demand for their services. Each property is also underpinned by strong land values,” Chand says.
“With built-in rental growth through annual increases and market reviews, these properties are highly compelling purchasing opportunities in a sector that remains keenly sought among investors.”
Prentice, Director of Sales and Leasing at Colliers, says the portfolio offers a strong tenant covenant through a market-leading provider in the sector.
“BestStart operate early childhood centres throughout New Zealand from Whangarei to Invercargill,” Prentice says.
“They have a dedicated team of 4,500 teachers and support staff across the country that help children to belong, thrive, and achieve through the world-recognised philosophy of learning through play.
“Founded in 1996 with their first centre in Tauranga, BestStart has flourished and grown into New Zealand’s largest provider of early childhood education.”
Prasad, Investment Sales Broker at Colliers, says asset portfolios of this size and scale are seldom seen on the open market.
“Given buyers can purchase one centre, or a collection, through to the entire portfolio there are a range of investment opportunities available,” Prasad says.
“With all of the key fundamentals in place such as an established operator signed to long-term leases, these highly functional properties will hold significant appeal.”
- Article supplied by Colliers
