Nestled in the fast-developing Auckland suburb of Westgate, a brand-new early childhood education centre offers prospective purchasers the opportunity to acquire a high-quality investment in a keenly sought asset class.
3 Pua Street, Westgate has been consented for 120 children and sits on a 2,402sq m freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan. The centre is set to open in the coming months.
The incoming tenant has a 15-year lease in place with two further rights of renewal for 10 years each. The lease agreement returns $368,160 plus GST per annum and includes 2 per cent annual increases, as well as five-yearly market reviews.
With excellent visibility and street exposure, the property is located near Costco, Bunnings, and NorthWest Shopping Centre, while sitting within a large residential catchment that is growing quickly.
Start your property search
The surrounding area includes Hobsonville Point, Red Hills, Whenuapai and Kume?-Huapai, which are four of Auckland’s largest greenfield residential suburbs.
Over the next 30 years, Auckland Council estimates that the population of Red Hills and Whenuapai alone will grow from 4,000 to over 40,000 people, leading to further demand for accessibility to childcare centres.
Colliers Directors Shoneet Chand, Josh Coburn, and Matt Prentice have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 7 December, unless sold prior.
Chand, Director of Investment Sales at Colliers, says childcare centres are a coveted asset class among buyers.
“The subject property presents purchasers with the chance to acquire a brand-new building that will serve as a low maintenance asset,” Chand says.
“Early childhood education centres have outstanding investment fundamentals that are highly attractive to buyers, including tenants that have agreed to long-term leases with favourable terms.
“This property offers guaranteed future rental growth through fixed annual increases and regular market reviews, which is incredibly appealing.”
Coburn, Director of Site Sales at Colliers, says the growth of the north-west of Auckland means there is a heightened need for further services in the area.
“Following the formation of the Auckland super city in 2010, Westgate was identified as one of 10 Metropolitan Centres in the Auckland region and the subsequent Unitary Plan allowed the rezoning of surrounding areas, including Red Hills, Whenuapai, and Kumeu-Huapai, which massively increased the importance of Westgate as a retail and commercial centre,” Coburn says.
“To date, public and private sector investment in the Westgate area is in excess of $1 billion with some of the most recognisable brands and companies establishing a stake in the north-west of Auckland.
“There have been significant improvements in the infrastructure in the area with the upgrade of State Highway 18 and the opening of the Waterview Tunnel being some of the key projects that have helped to unlock the potential of the area.”
Prentice, Director of Sales and Leasing at Colliers, says this property offers buyers the chance to secure a top-tier asset.
“Demand for childcare centres among buyers remains strong as savvy investors realise the long-term potential attached to these properties,” Prentice says.
- Article supplied by Colliers
