The property at 302 Henderson Valley Rd, Henderson is occupied by a childcare and café complex.
The property at 302 Henderson Valley Rd, Henderson is occupied by a childcare and café complex.
A purpose built childcare and café complex on the western outskirts of Auckland is for sale offering investors something quite different from the usual inner-city commercial properties.
The freehold property, at 302 Henderson Valley Rd, Henderson, is being marketed for auction sale by Peter Kermode, Deborah Dowling and Michael Bray of Colliers International and is due to go under the hammer at 11am on November 11 at the agency's offices at 151 Queen St, Auckland, unless it sells before auction day by negotiation.
The large 2233 sq m site is leased to two tenants: Old MacDonald's Country Kindy and the Pukeko café and function centre.
Deborah Dowling, of Colliers International.
"It is next to the Kiwi Valley Farm Park which gives visitors a hands-on experience with farm animals," Dowling says.
"The childcare centre and café were originally built as part of the Kiwi Valley Farm Park complex. The owners have since sold the farm park to another operator, and are now selling their remaining interest in the property as they are moving out of Auckland," she says.
"This is a solid commercial investment quite unlike those within the city boundaries. The neighbouring farm offers city residents a rural experience and provides a steady flow of customers for the café and also gives the childcare centre a country focus."
Kermode says the property's affordable price range and its split-risk characteristics are expected to be key drawcards for buyers.
"It offers the income security of two separate tenancies, as well as an attractive price bracket compared with property investments in the nearby Henderson commercial centre," he says.
Bray says the childcare centre and café are both well-established and known to the local population, which helps ensure strong patronage.
"The childcare centre is very popular and has a waiting list of families keen to enroll their children into a distinctive facility that gives them a farm experience. The café is also a favourite among locals, and its liquor licence enables it to morph into a social spot in the evenings, often with live music at weekends."
An interior view of the property at 302 Henderson Valley Rd.
Dowling says the property's strong investment fundamentals and its passive, long-term nature make it a great buy for locals, family trusts and first-timers to the commercial property market.
"The childcare investment sector is very popular at the moment with high demand for well-run centres in good locations. There are very few competing centres in the nearby area which gives this property a scarcity value. The café tenancy further strengthens the investment characteristics, with its location adjacent to a popular local attraction being a key selling point," she says.
Old MacDonald's Country Kindy is licensed for 50 children between two and five years old. It includes an indoor learning area as well as an outdoor adventure playground. The children also visit the farm at least once a week to interact with the animals.
The current lease terms expire in April 2020, with rights of renewal providing possible final expiry dates of April 2034. Total net annual rental income amounts to $134,200, with regular rent reviews giving the potential for income growth.
Peter Kermode, of Colliers International.
Kermode says building was constructed in 2000 from Oregon timber that was originally imported and used to build the stables at the Ellerslie Racecourse.
"The extensive use of recycled timber gives the complex a barn-like country feel," he says.
There is a gift shop on site along with good customer parking.
Bray says the property sits on the edge of Auckland City and the Waitakere Ranges in a location having the benefits of a rural position along with the convenience of being only 10 minutes' drive from the Westfield WestCity shopping centre.
"Henderson is a fast growing residential suburb just 13 kms from Auckland city centre and is part of the wider West Auckland suburban area that has become a centre of rapid residential and commercial growth," he says.
"In fact West Auckland is cited as the fastest growing area in Auckland with over 20,000 new homes planned for the wider area."
