Kumeu childcare tipped to grow

An artist's concept of the 100-child facility now being built at 21 Access Rd. Photo / Supplied

Agents predict a childcare facility under construction at Kumeu will 'raise the bar for such enterprises' in Auckland's rapidly expanding northwest.

CBRE's childcare team, Brad Visser and Richard Larman, are selling the 100-child centre, now being built at 21 Access Rd.

It is owned and developed by Junior Junction, which is to stay on to operate on an initial 18-year lease term, says Visser.

The lease will earn $296,400 net per annum, with built-in rent growth linked to the Consumer Price Index and reviewed every other year.

The freehold property is for sale by a deadline private treaty process, closing 4pm November 20, unless sold earlier.

"It has long-term, built-in rent growth, offering a high quality operator in an area growing at pace that is attracting young households and first home buyers. The developer Junior Junction has more than 10-years industry experience," Visser says.

"It will operate the facility on the initial 18-year lease term, with an additional three rights of renewal, of six-years each.

"This takes the full term to 36 years from commencement."

Visser says the centre must be sold before Christmas.

"It will appeal to investors looking for superior construction and long-term, built-in rent growth."This is combined with the assurance of dealing with a well-regarded company that operateseight other centres which is staying on as the long-term-tenant."

He says the centre, which is due for completion mid-next-year, is based on a former Baptist Church building on a prominent 1722sq m site in Access Rd. It has been designed by Waitakere Architects, offering a modern take on traditional countryside architecture.

Larman points out that the design retains the previous building's high ceilings, to let in plenty ofnatural light. It will stand almost next door to the Kumeu Showgrounds and will eventually be surrounded by existing and new housing developments totalling more than 1400 residences.

"These include more than 200 homes going in behind the New World; 1200 for the Kumeu Huapai triangle through Cabra Developments; and a further few hundred under development northwest of Huapai Town Centre.

"Being located just a a couple of hundred metres from State Highway 16, the property is close tothe Huapai town centre and the main shopping and residential areas.

"Above all, it offers an easy drop-off and pick-up location on the way into or out of Auckland."

Larman says Junior Junction opened in 2007, with a mission to create an environment for teaching excellence, 'where learning meets fun'. It caters for children from three-months-old, up to five-years of age and the company's eight other centres offer a wide age spectrum and flexibility for parents.