A highly visible early childhood education centre in the South Auckland suburb of Manurewa is available for purchase and will pique the interest of buyers looking to secure a passive investment backed by a strong tenant covenant.
52 Alfriston Road, Manurewa, is home to a building with 435sq m of total floor area that sits on a 1,831sq m freehold site.
The tenant at the property is Busy Bees Aotearoa which has more than 80 centres nationwide underscoring their expertise in the early childhood education sector. This centre is licensed for 90 children.
After beginning a 15-year lease in 2018, the tenant also has multiple rights of renewal in place leading to a final expiry in February 2053. There is added security in the lease with a 12-month bank guarantee.
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The total annual rental income from the lease agreement is $223,426 plus GST and there are 3 per cent increases scheduled every two years with future market reviews also in place.
Manurewa is an area that is undergoing extensive growth and the subject property is only 700m from the local train station, while there are multiple bus routes that service the suburb. State Highway 1 is 2.4km away.
The Southmall Manurewa shopping centre is only a few minutes away via car offering access to a range of key amenities.
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 Tuesday 17 December, unless sold prior.
Having started as a single centre in Rotorua in 2013, Busy Bees Aotearoa has grown to having centres across the length of New Zealand from Northland to Otago.
They are focused on being one of the top early childhood education providers worldwide and are committed to doing things differently. Their global mission is to give children the best start in life and their early learning approach is based on discovery and exploration of respectful relationships with children.
Busy Bees is dedicated to supporting Aotearoa's tamariki on a lifelong learning journey.
Prasad, Investment Sales Broker at Colliers, says this property, which has excellent street frontage to Alfriston Road, shapes as a compelling long-term investment opportunity.
"This purpose-built facility houses a highly reputable operator in the early childhood education sector and there are attractive lease terms that will be appealing for investors," Prasad says.
"On top of the regular rental increases there are market reviews in place for 2026, 2033, and every five years thereafter, providing built-in rental growth for the new owner.
"Due to the long length of their lease agreements, early childhood education centres remain a sought-after asset class for passive investors."
Data from the most recent Census notes the Manurewa local board area experienced steady population growth of 3.3 per cent across the past five years, which followed a significant boost in the local population between 2013 and 2018.
Future projections from Auckland Council suggest the area will continue to grow with further infrastructure investment making the area more accessible and liveable.
Located only 26km from Auckland s CBD, the suburb also provides ready access to Auckland Airport and the motorway network.
Chand, Director of Investment Sales at Colliers, says Manurewa is one of Auckland's largest and fastest-growing suburbs.
"Manurewa is home to many young families and this will fuel a continued demand for childcare opportunities, ensuring there will be ongoing interest in centres such as this one," Chand says.
"Passive investment opportunities like this will catch the eye of a broad array of buyers."
The property is zoned Residential Mixed Housing Urban Zone under the Auckland Unitary Plan meaning there is a development angle that could be explored in the future.
- Supplied by Colliers
