A highly visible childcare centre in the affluent Auckland suburb of Beachlands provides prospective purchasers with the opportunity to acquire a top-quality asset with a strong tenant covenant.
49 Third View Avenue, Beachlands has 322sq m of total floor area on a 1,011sq m site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
The property is home to Small Fries Christian Childcare Centre, which is licensed for 40 children. The tenant is in the early stages of an initial 12-year lease term that expires on 31 December 2032 and includes further rights of renewal and regular rent reviews.
The annual rental income from the property is $85,000 plus GST, while there is an upcoming CPI review providing fantastic rental upside.
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The site has nine dedicated car parks offering convenience for occupants, while the property can be easily accessed from the street.
Colliers Brokers Ronal Prasad and Logan Roach have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 7 September, unless sold prior.
Prasad, Investment Sales Broker at Colliers, says Small Fries is a highly respected childcare centre operator that also has another centre in Windsor Park on the North Shore.
“Small Fries Christian Childcare Centre was developed by Windsor Park Baptist Church as part of its larger vision to serve families in their local area,” Prasad says.
“Teachers know the children and families well, and a culture of care and kindness is evident. The curriculum is responsive to children’s interests.”
Roach, Investment Sales Broker at Colliers, says favourable lease terms underpin the strong tenant covenant of the property.
“On top of the existing 12-year lease, there are two further rights of renewal for six years each leading to a final expiry of 30 December 2044,” Roach says.
“The lease agreement also includes CPI increases every two years and a market rent review every six years, which will be highly attractive to buyers who will be able to enjoy built-in rental growth in the future.
“Childcare centres are a highly sought-after asset class with tremendous investment fundamentals and represent a strategic asset for any discerning investor.”
Beachlands has recently seen a further surge in population as more people choose to reside permanently in the area and commute into town using the always-improving public transport options. There is also a range of amenities that service Beachlands, while Botany Town Centre is less than 20 minutes away.
Surrounding suburbs include Whitford, Maraetai, Clevedon, Kawakawa Bay, and Orere Point.
Roach notes there are a number of large-scale developments in the surrounding area, allowing for the predicted property growth and further spread away from central Auckland.
“The largest of these is Spinnaker Bay, a 350-lot residential subdivision, bordered by Beachlands Road, Whitford-Maraetai Road, and the coastline.
“Other nearby developments include Pine Harbour with further developments in their early stages south of Beachlands.
“Beachlands School and Maraetai Beach School are both based in the area, making it an incredibly family friendly suburb.
“The subject property has all of the key fundamentals of a prime passive investment, including a strong tenant covenant in an established site with a long-term lease in place and we encourage all interested parties to contact us immediately.”
- Article supplied by Colliers
