The nearly 2,800-square metre site in Whalers Gate lies in a city-fringe area popular with families and is close to schools of all levels along with local amenities and State Highway 45 linking to the city centre.

The spacious single-level property is fully leased to anchor tenant Little Minds Early Learning Centre along with The Backyard Café.

The site generates a total net rental return of $235,786 plus outgoings and GST per annum, with built-in annual growth of 1.75 percent on the anchor lease, which is underpinned by a bank guarantee.

Licensed for 83 children, Little Minds is a popular option with parents in the area for whom its position near State Highway 45 allows convenient pick-ups and drop-offs of children on the way to and from work in the city centre.

The childcare operator occupies its approximately 445-square metre premises on a lease that runs through to 2034, with two further 10-year rights of renewal. It pays a net rent of $203,499 plus outgoings and GST per annum.

The Backyard Café, a family-friendly café with a relaxed atmosphere, is a complementary presence that provides a second diversified income stream. It pays a net annual rent of $26,845 plus outgoings and GST for its approximately 80-square metre premises, on a lease extending to 2025, with three further five-year rights of renewal.

The freehold land and building at 44 Barrett Road, Whalers Gate, New Plymouth, are being marketed for sale by Iain Taylor and Darryl Taylor of Bayleys New Plymouth.

The property is being offered by deadline private treaty closing on Thursday 8 December, unless it is sold prior.

Iain Taylor said the Barrett Road property offered an ideal chance for passive investors to acquire a low-maintenance asset with built-in growth.

“The popular residential suburb of Whalers Gate provides a great catchment for the site’s childcare and hospitality tenants,” he said.

Zoned Residential A by New Plymouth District Council, the property consists of a building with an overall floor area of approximately 525 square metres on some 2,793 square metres of freehold land.

“Redeveloped around 2018, these high-quality, architecturally designed premises are well suited to the childcare and café tenants. The spacious single-level design of the nearly 450-square metre childcare premises is supplemented with an expansive, well-fenced outdoor play area of a similar size,” said Iain Taylor.

Darryl Taylor said the Barrett Street site benefited from the area’s ongoing residential growth with the added convenience of being close to local schools, State Highway 45 and a supermarket.

A growing population, combined with New Zealand’s high childcare participation rate, had driven a lift in demand for early childhood education over the past decade, he said.

Nearly two-thirds of all pre-school-aged children attend early childhood education, with the number rising to 95 percent among four-year-olds, according to the Ministry of Education’s 2019 census of early childhood education services.

“Childcare businesses also enjoy added security due to the fact that much of their income is government-funded through the provision of 20 hours a week of free childcare for most New Zealand children,” Darryl Taylor said.

Click here for more information on the listing.