Strategic childcare site offers great scope

The East Tamaki site has a semi-rural urban and commercial outlook. Photo / Supplied

A freehold East Tamaki property that is only partly developed but which is capable of producing good cash flow has been put on the market by Westpac bank as a mortgagee sale.

The 4093sq m site at 37 Bishop Dunn Place went into receivership with a new two-storey purpose-built childcare centre and 28 carparks now occupied by Kiwi Super Tots Learning Centre.

Plans for developing the rest of the site as 12 live/work units and 26 carparks failed to get off the ground after the developer's resource consent application to the Manukau City Council was withdrawn.

CB Richard Ellis sales brokers Colin Stewart and Jonathan Ogg, who are selling the property by mortgagee tender closing on March 4, say the property offers the ideal combination for investors or developers - prospective cash flow and development upside.

"This is the type of investment that excites buyers. It already has cash flow potential from state-of-the art premises built to suit a childcare centre operator and room for further sizeable development," Stewart says.

The freehold site includes a half share of a 510sq m driveway and sits at the end of Bishop Dunn Place just off Te Irirangi Drive, the main arterial route between Botany town centre and Manukau City.

On the developed part of the site, Kiwi Super Tots Learning Centre is spread over 1550sq m and has room for 135 children and 18 staff. It was opened in the middle of last year.

The ground floor of the childcare centre has 423sq m of indoor and 459sq m of outdoor area while the first floor has 379sq m of indoor and 279sq m of outdoor space. A paved area holds the 28 carparks. Access to the upper level of the centre is by a curved internal stairway. A feature dome provides natural light to the lower level. The first level outdoor area has a sandpit, bark area and a raised garden. On the ground level there is purpose-built play equipment and perimeter fencing.

It has a semi-rural urban and commercial outlook. Ogg says this will change as a planned 20ha residential development designed to house 40,000 people is about two kilometres away.

Zoned Business 5 under the Operative Manukau City Council District Plan, the undeveloped part of the property can be used for activities including offices, taverns, travellers' accommodation, wholesale trade, warehousing, storage and auction rooms.