A leading early childhood education centre in the high-growth region of Orewa presents prospective purchasers with the opportunity to acquire a premier bottom-drawer investment with an established tenant on a long-term lease.
46-48 Centreway Road, Orewa, is home to a 660sq m building on a 1,909sq m freehold site that is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.
The property is tenanted by Educare Orewa, one of 23 Educare Early Learning Centres across New Zealand.
The centre is consented for 105 children and Educare has a 15-year lease at the property with further rights of renewal that provides $327,589 plus GST and operating expenses in annual rental income.
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Alongside the functional childcare centre, the property also offers an outdoor play area as well as 24 dedicated car parks.
Orewa is only 25 minutes from Takapuna, five minutes from State Highway 1, and approximately 30 minutes from Auckland’s CBD.
Colliers Directors Shoneet Chand and Matt Prentice have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Tuesday 13 September, unless sold prior.
Constructed in 2017 by experienced early childhood education centre developers Signature Homes, the well-maintained property enjoys favourable proximity to Orewa College, Orewa Beach, and the town centre.
Educare’s current lease runs until 2032, while there are two further rights of renewal for 10 years each leading to a final expiry of 2052.
Their lease also includes fixed annual rental increases of 2 per cent and market reviews every five years.
Chand, Director of Investment Sales at Colliers, says the property has a strong tenant covenant underpinned by an experienced industry provider.
“Educare are a proven childcare centre operator with locations in Whangarei, Auckland, Waikato, Wellington, and Christchurch,” Chand says.
“They pride themselves on quality childcare with a strong emphasis on safety and nature within a whanau environment. They recognise the importance of providing care and education for children in their early years that encourages them to develop foundation life skills through a philosophy of ‘Learn, Laugh, Play’.
“The lease terms on the property are incredibly appealing for buyers given the annual rental increases and five-yearly market reviews, which should lead to ongoing rental growth.”
Prentice, Director of Sales and Leasing at Colliers, says the childcare sector is a sought-after asset class among investors.
“Childcare centres are tightly held and always draw considerable interest when presented to the open market given the strong investment fundamentals on offer,” Prentice says.
“The early childhood education sector in New Zealand benefits from substantial Government support.”
Prentice says Orewa, which has picturesque views and popular local hospitality spots, is an area that is continuing to experience ongoing growth.
“Orewa’s population topped 10,000 at the last Census in 2018 and the fastest growing demographic among residents was in the 25 to 34-year-old category.
“Previously Orewa was known for being predominantly a retirement community and holiday destination.
"However, improvements in motorway access and the recent development of park and ride facilities in the adjoining township of Silverdale means that Orewa is now a convenient commuter suburb.
“The Northern Motorway section of State Highway 1 passes just inland of Orewa, while upgrades to the main road and the widening of the footpath have reconnected the town with the beach.”
The Business – Mixed Use Zone is typically located around centres and along corridors served by public transport. The zone provides for residential activity as well as predominantly smaller scale commercial activity that does not cumulatively affect the function, role, and amenity of centres.
- Article supplied by Colliers
