All five occupy prime positions in Manurewa and run at full capacity. Photo / Supplied
All five occupy prime positions in Manurewa and run at full capacity. Photo / Supplied
Five new childcare centre investments on long-term leases in the South Auckland suburb of Manurewa are being sold individually by auction.
The freehold properties leased to sector-leading operator ChoiceKids, are being marketed by Colliers International brokers Josh Coburn, Shoneet Chand, Kris Ongley and Cherry Higginson.
They will be auctioned individually at Colliers International's Queen St office at 1pm on November 29, unless sold earlier.
Coburn says the new and newly converted properties offer high-quality, modern, specialist childcare facilities.
"This is an outstanding opportunity to secure from one to all five of these affordably priced, superbly positioned investments," he says.
"Each property is signed to a new 15-year lease commencing from settlement, with two 10-year rights of renewal.
"The properties each return net annual rents of between $70,000 to $117,000, with fixed rental increases of 3 per cent every two years, plus market reviews at eight years.
"Whether you're looking for a standalone investment, or an entire childcare property portfolio with excellent tenant covenant, these auctions are not to be missed."
Chand says all occupy prime positions in the heart of Manurewa, about 26km south-east of Auckland's CBD.
Two are on Mahia Rd, two on Browns Rd and one on Weymouth Rd.
"The excellent 'grouped' locations ensure visibility and recognition ," Chand says.
"The suburb is a great location for childcare investments, given its diverse and young population, with an average age of 29.8 at the last Census in 2013 - one of the youngest in wider Auckland.
"Manurewa is now seen as an affordable area for young families and first-home buyers.
The ChoiceKids operation at 4 Browns Rd. Photo / Supplied
"As well as numerous childcare centres, the suburb has several schools including primary, intermediate and high schools.
Ongley says the small, high-quality centres are each licensed for between 35 to 50 children.
"The smallest, at 49 Browns Rd, is licensed for 35 and returns an initial net passing income of $70,000 per annum," he says.
"The 827sq m property comprises a converted 1930s bungalow that was substantially remodelled in 2011.
The next largest property, at 149 Mahia Rd, is licensed for 40 children and returns an initial net passing income of $93,600pa.
"Oon an 818sq m site, the 181.3sq m building comprises a main activity room, a kitchen, sleep room, children's bathroom, staffroom and office," Ongley says.
Ongley says the 901sq m property at 436 Weymouth Rd is licensed for 45 children and returns an initial net passing income of $105,300pa.
The two largest centres, each licensed for 50, return an initial net passing income of $117,000pa each.
Higginson says the 943sq m property at 51 Mahia Road offers 292.25sq m of internal space, while the 1,132sq m property at 4 Browns Road has 316.3sq m of internal space.
All the centres are zoned Mixed Housing Suburban, which allows for future conversion to residential use.
ChoiceKids was established in 2011 with the aim of providing family-first, cost-effective childcare in parts of Auckland where many families have been priced out of quality early childhood education.
"The centres run at full capacity, demonstrating both the demand for the ChoiceKids offering, and the faith that the local community has in the business," says Higginson.
