The entire upper floor of a modern two-level Mt Wellington retail centre is for sale, with the strong lease to an established childcare operator and the compelling location expected to resonate with passive investors.
The freehold unit-titled A-grade premises at 5/517 Ellerslie-Panmure Highway was purpose-built as a childcare facility, and is occupied by Mighty Minds Educare, a Montessori-inspired childcare centre licensed for 100 children.
It has a dedicated entrance and comprises around 1,088sqm of floor area split almost equally across light and bright interior learning and care space, and outside play areas. Car parking is available within the wider development.
The property currently returns annual net income of $326,600 plus operating expenses and GST, on a 12-year lease to Mighty Minds Educare Mt Wellington Limited that commenced 1 September 2019.
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The lease has two, six-year rights of renewal, built-in CPI-based growth, and a market rental review scheduled for this September. There is a 12-month bond covering lease and OPEX held in a landlord solicitor trust account, which is transferable to a new owner.
Businesses on the lower level of the building include Lola’s Café, Ray White Mt Wellington, and St Pierre’s Sushi.
The quality retail development was completed by boutique property company Argyle in 2019, on a site previously occupied by a McDonald’s outlet.The prime position at the intersection of Ellerslie-Panmure Highway and Mt Wellington Highway provides strong branding opportunities and has easy accessibility.
McDonald’s now occupies a more modern and prominent premises directly adjacent to the subject property, and it is understood to be one of the city’s busiest such stores.
The childcare-occupied component of the retail centre is for sale by deadline private treaty closing 5th April, unless sold prior, through Mike Adams, Quinn Ngo and Karen Yung of Bayleys.
The childcare and early education sector is a proven and resilient asset class with stable returns, and appeals to investors wanting a well-performing passive, investment option, says Adams.
“Population growth, residential housing intensification, and the rise of dual-income households underpins ongoing demand for childcare and early learning provision across Auckland.
“It’s a defensive asset class that is characterised by long-term leases which gives the operator business continuity and stability for its family clients, and give landlords surety.
“This Mt Wellington property is a fine example of a fit-for-purpose childcare facility that clearly works well for both the operator and its loyal clientele.”
Adams says the general location speaks for itself being home to a range of high-profile businesses like Bunnings, Harvey Norman, Briscoes, and Rebel Sport, with the Lunn Avenue retail and Sylvia Park retail and commercial precincts adding weight to the Mt Wellington story.
“The subject property has superb connectivity with Panmure train and bus station just 400m away, and the southern motorway on/off-ramps around the corner.
“Recent and ongoing upgrades to infrastructure and the public transport network all support continued residential intensification, with nearby Stonefields proving enduringly popular with homeowners.”
Mighty Minds Educare also has childcare centres in Penrose, Glenfield and Bucklands Beach.
- Supplied by Bayleys
