A contemporary childcare facility located in Hamilton’s northern growth precinct provides passive investors with care-free income courtesy of a new 12-year lease agreement.
The multi-level property, set on a 4,338sqm (more or less) freehold site at 75 Church Street, is strategically situated to capitalise on its proximity to the established residential communities of Pukete and St Andrews, with the bustling commercial and industrial hub of Te Rapa to its west.
Bayleys Hamilton salespeople Alex and Luke ten Hove are marketing the property for sale by auction, scheduled at 12:00pm on Thursday, 10th October 2024 (unless sold prior).
They say the property, which features a floorplate of 695sqm (more or less) over two levels, offers a true hands-off investment opportunity for purchasers seeking diversification in their portfolios.
Start your property search
“Well-located childcare centres have proven to be a popular investment vehicle for those seeking stable, long-term returns,” says Alex ten Hove.
“With its brand-new 12-year lease, this property provides the dual benefits of a secure income and minimal management, making it an ideal addition to any portfolio.”
The property generates an annual net rental income of approximately $300,000 plus operating expenses, and it is leased to regional childcare services provider Future Kids Preschool.
Future Kids, which operates three additional centres in Taranaki, holds a lease on this property until April 2036, with two six-year renewal options. The lease terms are particularly attractive, featuring fixed annual rent increases and market rent reviews every six years.
Luke ten Hove says that demand for quality childcare facilities is driven by the continued growth of Hamilton’s northern precinct, where young families have flocked to establish roots.
“With Hamilton’s population projected to increase significantly over the coming years, the need for accessible childcare services will only intensify, ensuring the sustainability of this A-grade investment.
“The property’s convenient location, close to the Waikato Expressway, significantly boosts its appeal. With easy access to nearby residential communities and a thriving commercial hub, including Te Awa (The Base) Shopping Centre, this site enjoys a built-in customer base and robust economic activity in the surrounding area.
“In a variable economic climate, investors gravitate towards assets that offer reliable returns with minimal risk.
"This childcare facility ticks those boxes – providing an attractive mix of modern construction, purpose-built to the latest specifications, with a stable cash flow and the potential for capital appreciation.
“With its prime location, solid lease agreement and the growing demand for childcare services, 75 Church Road represents a sound and strategic investment choice for those looking to secure their financial future.
"The auction on October 10th presents a rare opportunity to acquire a high-yield asset poised to perform well, with guaranteed income for over a decade,” Luke ten Hove says.
- Supplied by Bayleys
