The land and buildings housing a modern, purpose-built childcare centre in South Auckland has been placed on the market for sale.
The property, at 336 Great South Road, in Papakura, offers 511sq m of floorspace over two levels on 1419sq m of land and generates an annual net rental income of $243,100 plus GST.
It is leased to a proven and experienced childcare operator until 2033, with options to extend to 2053.
Bayleys sales agents Tony Chaudhary, Amy Weng and Piyush Kumar are marketing the property for sale by tender, closing at 4pm on Tuesday, April 10.
Mr Chaudhary says: “The childcare sector in Auckland is experiencing record growth, and properties occupied by childcare businesses are proving popular with investors. Public funding for the sector is reliable and secure, rising from $860 million in 2008 to almost $1 billion now.
“This fee simple property is an opportunity for investors to acquire a high-quality, low-maintenance asset with long-term stability.”
He adds: “The underlying value of more than 1000sq m of land zoned Residential - Mixed Housing Suburban in a growth suburb will translate into substantial value at end of the lease term.”
The childcare centre offers modern facilities designed to encourage child development and is run by All About Children, one of the country’s leading providers of early childhood education.
Mr Chaudhary says: “All About Children caters for children aged between zero and five years, and has a network of childcare centres spanning Auckland, Wellington, Palmerston North and Marton. The Great South Road centre is its latest venture and is licensed for 85 children.
“The family-owned business embraces a child-centred approach to pre-school education that promotes the development of creativity, individuality and self-confidence of its charges.”
The outdoor areas feature native trees and garden spaces. It has been designed by children’s play area specialists PlayScape to bring natural elements into everyday play, such as sensory paths, climbing logs and sand pits.
According the operator's website, the centre is "geared to offer a programme that is individualised to every child’s unique needs. Regular activities and outings such as nature walks in nearby Kirk Bush, engagement with the community and in-centre activities form part of our well-rounded and fun learning programme."
It adds: "Our purpose-built centre offers unlimited indoor and outdoor opportunities for children to explore and discover, carefully balanced out with quiet spaces for the delicate needs of our babies."
Ms Weng says the centre is open from 7am to 6pm, to accommodate the longer working hours that many parents face. It has 15 carparking spots to allow easy drop-offs and pick-ups.
The property, which has a Ratings Valuation of $820,00, is in a high-profile location on Great South Road, and offers easy access to the Southern Motorway and numerous public transport options, with Papakura train station less than a 15-minute walk away.
It also enjoys high levels of local amenity. Nearby are two leading supermarkets – a New World and a Countdown – a Farmers department store and a medical centre, of benefit to busy parents with children at the childcare centre.
The neighbourhood is also well served for schools, with St Mary's Primary, Opeheke Primary, Edmund Hillary School and Rosehill intermediate all a short drive from the centre.
Ms Weng says early childhood education (ECE) is an in-demand sector for commercial property investors. “It is viewed as more secure than other asset classes, because of not only the strength of the leases involved but also New Zealand’s high childcare participation rate,” she says.
“Since 2008, the proportion of children enrolled in early childhood education (ECE) has risen from 93.6 percent to 96.6 percent, while time spent in ECE has reached an average of 21.7 hours a week, up from 13.5 hours in 2000. Public funding for the sector is reliable and secure, rising from $860 million in 2008 to almost $1 billion now.”
The Government fully funds 20 hours of care a week for all children aged three, four and five. It has recently pledged to spend an extra $193 million over three years for ECE and increase funding for centres that employ 100 percent qualified and registered teachers. Its stated goal is to have 98 percent of children attending an early childhood service before starting school.