Three high-quality properties leased to established tenants in the childcare sector are being presented to the market for sale offering buyers the chance to secure a collection of top-tier assets with steady rental streams.
The properties are located at 5 William Pickering Drive, Albany, 199-203 Beach Haven Road, Beach Haven, and 4019-4021 Great North Road, Glen Eden, and have a combined land area of 7,525sq m.
The total annual rental income across the portfolio is $1,167,419 plus GST and the properties can be purchased individually or in a bundle.
Colliers Brokers Shoneet Chand, Ronal Prasad, and Matt Prentice have been exclusively appointed to market the properties for sale via deadline private treaty closing at 4pm on Tuesday 28 March, unless sold prior.
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5 William Pickering Drive is home to six different tenancies, providing buyers with a compelling split-risk investment opportunity.
There is 1,560sq m of floor area spread across two buildings on a 3,575sq m site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
Just Kidz, a childcare provider licensed for 98 children, is the anchor tenant and they are in a building that was fully repurposed to an as new standard in 2019. They have a 15-year lease that runs until January 2037 and includes two further rights of renewal for 10 years each. There are annual CPI rent reviews and market reviews every five years.
The other occupants are in an office building at the property that was constructed in the 1990s and includes Dance Space, who have a long-term lease running until 2032 with a further right of renewal for 15 years, and four other tenants with shorter lease agreements that expire during the next few years.
The total annual rental income from the property is $454,577 plus GST per annum.
The purpose-built childcare centre at 199-203 Beach Haven Road is licensed for 125 children and was constructed in 2022 and is home to nationally recognised childcare provider BestStart.
With 725sq m of floor area, the freehold property sits on a 1,927sq m site that is zoned Residential – Mixed Housing Urban Zone under the Auckland Unitary Plan.
The occupants began a 15-year lease in December, which runs until 2037 and provides two further rights of renewal for 10 years each, leading to a final expiry in 2057.
The property provides $356,054 plus GST per annum in net rental income and the lease agreement includes annual CPI increases and future market reviews.
Happy Learning Childcare is the tenant at 4019-4021 Great North Road and they began a 15-year lease at the property in 2021 that includes two further rights of renewal for 10 years each leading to a final expiry in March 2056. Their agreement includes 1.5 per cent annual rental increases and market reviews every five years.
The property is purpose-built and licensed for 120 children and provides 760sq m of floor area on a 2,023sq m site that is zoned Residential – Terrace Housing and Apartment Building Zone under the Auckland Unitary Plan.
Chand, Director of Investment Sales at Colliers, says this portfolio of properties presents buyers with a raft of purchasing options.
“Buyers can choose to acquire one, two, or three of these impressive properties that have built-in rental growth from established occupants that are signed to long-term leases,” Chand says.
“The split-risk nature of 5 William Pickering Drive will be particularly appealing and offers multiple income streams.”
Prasad, Investment Sales Broker at Colliers, says childcare centres are sought-after among buyers.
“These properties provide a strong tenant covenant given they house respected operators in a sector that receives considerable government support,” Prasad says.
“BestStart is a nationwide brand, while Just Kidz has eight sites across Auckland, and Happy Learning Childcare operate in Glen Eden and Middlemore.”
Prentice, Director of Sales and Leasing at Colliers, says these properties have the key fundamentals of an appealing bottom drawer investment.
“With long-term leases for established occupants in a desirable asset class this portfolio of top-tier properties will generate considerable interest in the market,” Prentice says.
- Article supplied by Colliers
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