A portfolio of childcare centre properties accommodating over 550 children spread across high growth locations in Auckland offers buyers the opportunity to secure premier properties with long-term tenants in one of New Zealand’s most sought-after asset classes.
The portfolio includes the land and buildings for six BestStart Educare centres, which is part of the company’s nationwide network of more than 270 early childhood education centres that care for more than 15,000 children each day.
BestStart Educare Ltd is a registered charity.
The total net annual rental income from this six-strong portfolio is $1.52 million plus GST with each individual centre returning between $169,000 to $300,300 plus GST per annum.
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In addition to new 12-year lease terms plus further rights of renewal and a final lease expiry of 2052, this portfolio of centres also offers fixed annual rental growth plus four-yearly market reviews.
The properties can be purchased separately or as a combined offering, opening up the opportunity to a wide range of buyers who will recognise the significant potential attached to a passive investment of this kind.
Colliers Brokers Shoneet Chand, Matt Prentice, and Ronal Prasad have been exclusively appointed to market all six of the properties for sale by deadline private treaty closing at 4pm on Tuesday 12 July, unless sold prior.
-Two of the centres are in Flat Bush with a 509sq m building licensed for 100 children on a 1,943sq m site at 1 Picturesque Drive/25 Murphy’s Park Drive, and a 355sq m property designed to accommodate 52 children on a 1,012sqm site at 99 Michael Jones Drive, which is zoned Residential – Terrace Housing and Apartment Buildings Zone under the Auckland Unitary Plan.
Both modern facilities are on high-profile, freehold sections and were constructed during the past three years and offer on-site car parking.
-The next site is located at 15 Siedeberg Drive in Dannemora and the purpose-built facility provides 790sq m of floor area on a 2,928sq m site that can accommodate 105 children.
The large site occupies a fantastic position benefiting from easy access via arterial route Te Irirangi Drive and is zoned Residential – Mixed Housing Urban Zone.
-Located at 293 Botany Road is a 603sq m centre that is licensed for 104 children on a 2,600sq m freehold site. Surrounded by residential and commercial developments, the property is zoned Business – Mixed Use Zone offering strategic future development potential with a height limit of 18m.
-The purpose-built childcare centre located at 17-19 Portage Road, Otahuhu, was opened in 2015 and is designed to accommodate 90 children. The 640sq m property sits on a 2,337sq m freehold site. Portage Road serves as a throughfare providing fantastic traffic exposure in a growing residential neighbourhood.
-The final property in the portfolio offers 441sq m of floor area on a 1,923sq m freehold site located at 1-3 Cellarmans Street in Te Atatu Peninsula.
The property, which is zoned Residential – Terrace Housing and Apartment Buildings Zone, can accommodate 100 children and has favourable proximity to the nearby motorway network and fantastic on-site car parking.
Chand, Director of Investment Sales at Colliers, says this is an exceptional purchasing opportunity underpinned by the strong land values of the available sites.
“These properties are all located in key growth locations of Auckland meaning there will be continued demand for their usage for many years to come,” Chand says.
“There’s an incredibly strong tenant covenant on offer through the long-term leases on favourable terms that will provide incremental rental income growth for buyers.”
Prentice, Director of Sales and Leasing at Colliers, says the childcare industry is an asset class with tremendous investment fundamentals, including strong Government funding for the sector.
“All of the BestStart centres use the New Zealand curriculum Te Whariki, preparing children for their formal education at school. The trained teachers support children to belong, thrive, and achieve through the world-recognised philosophy of learning through play,” Prentice says.
“Founded in 1996 by Wayne and Chloe Wright with their first centre in Tauranga, BestStart has flourished and grown into New Zealand’s largest provider of early childhood education as a New Zealand-owned charity providing preschool, kindergarten, Montessori, and home-based services.
“BestStart’s mission is to provide high-quality education for young children with a focus on professional development of staff and providing a specialist support network. Their teachers are passionate and committed. They take pride in providing exceptional professional development opportunities that ensure their staff have outstanding skills.”
Prasad, Investment Sales Broker at Colliers, says it is incredibly rare to see opportunities of this nature presented to the open market.
“This portfolio provides prospective purchasers with the opportunity to acquire a collection of strategic assets that will provide significant long-term upside,” Prasad says.
- Article supplied by Colliers
