Two early childhood education centres with an established operator in key growth locations in Auckland are being presented to the market for sale.

20 Walters Road in Takanini and 9/20 Dunrobin Place in Half Moon Bay are home to centres operated by Go Bananas Childcare and are consented for 100 and 115 children, respectively.

The properties can be purchased separately but have similar long-term leases in place that run until 2030 with multiple rights of renewal leading to final expiries in 2066.

There is also built-in rental growth on offer with annual increases based on the greater of CPI or fixed increases of 1.5 per cent (capped at 2.25 per cent) and market reviews every five years, which are capped at 5 per cent.

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Colliers Brokers Ronal Prasad and Shoneet Chand have been exclusively appointed to market the properties for sale via deadline private treaty closing at 4pm on Thursday 16 March, unless sold prior.

The freehold property at 20 Walters Road has approximately 685sq m of total floor area and provides $326,287 plus GST in net annual rental income with $12,170 plus GST coming from Vodafone who lease a corner of the property for a cell tower.

Zoned Business – Town Centre Zone under the Auckland Unitary Plan, the property provides considerable add-value potential given the expansive 2,763sq m landholding.

Takanini has experienced considerable residential development recently with notable projects such as Waiata Shores and Kauri Landing adding to the rapidly growing area.

9/20 Dunrobin Place is a purpose-built freehold childcare facility that is part of a retail complex located just off a major arterial route that features nationally recognised brands and offers substantial car parking.

Boasting 520sq m of floor area, the property is also zoned Business – Town Centre Zone under the Auckland Unitary Plan and provides $289,380 plus GST per annum in rental income.

Prasad, Investment Sales Broker at Colliers, says Go Bananas Childcare is a respected operator in the sector and has more than 15 locations throughout the North Island.

“Having opened their first centre in Hamilton in 2014, the Go Bananas philosophy is based on the belief that each child is unique with their own strengths and abilities. They also believe that parents are the primary educators of children and quality education is achieved through working in a partnership between parents and teachers,” Prasad says.

“Their mission centres on providing a fun-filled quality education for children by knowledgeable and experienced teachers who engage in reflective practice and enhance their personal knowledge of the profession through ongoing professional development.”

Chand, Director of Investment Sales at Colliers, says childcare centres shape as highly desirable investment opportunities for discerning buyers who value the long-term growth potential on offer.

“Both subject properties have lengthy leases in place with favourable terms that will provide the new owners with consistent rental income,” Chand says.

“There is a strong tenant covenant in these centres given that Go Bananas is an established operator in the early childhood sector.

“The added bonus of a development opportunity at the property at 20 Walters Road adds an extra point of interest and ensures this is an offering not to be overlooked.”

- Article supplied by Colliers


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