'Magic' Kapiti Coast childcare centre

This Kapiti Coast childcare centre property, opening in a former RSA premises, is on the market. Photo / Supplied

By True Commercial

A former RSA premises, which has been completely refurbished into a new childcare centre, is for sale on the Kapiti Coast north of Wellington.

"This property has all the makings of a solid, long-term investment," says Dean Anderson of Colliers International, Kapiti, who is marketing the Magic Sparks Kapiti centre at 110 Amohia St for sale by tender closing on September 29, unless sold by private treaty.

Anderson says the 1976sq m site and 890sq m building offer buyers a strong investment proposition - generating net income of $150,000 a year from a new 12-year lease, with rights of renewal for 12 years and built-in rental growth.

"The lease could potentially extend to 2041, giving a buyer the security of fixed income growth and a tenant with several other childcare centres in its portfolio," Anderson says.

"The centre's operator, Magic Sparks, is a well-established and well-regarded early childhood education provider. It's replicating its tried and true day-care model here that already operates successfully in its two centres in Palmerston North and another in Petone."

The property is a good example of the trend in the property market for re-purposing older, obsolete buildings rather than building new ones, he says.

"We're seeing many older buildings given a new lease on life in various sectors across the commercial property market, and this is a great example of how an older building can be successfully adapted for a new type of use."

The centre, licensed for 90 children, includes a single-level building with four main internal areas and fully ducted air conditioning throughout. The site also provides secure outdoor play areas and car parking.

The childcare sector has demonstrated strong growth in recent years, Anderson says. "Demand continually outstrips supply in the childcare sector and this is likely to continue with the strong population growth forecast for the Kapiti Coast."

He says the Kapiti Coast represents over 10 per cent of the Wellington region's population and is one of the fastest growing areas in New Zealand.