Pokeno childcare investment property

The childcare centre at 62 Pokeno Rd is licensed for 120 children. Photo / Supplied

Agents say surging residential growth at Pokeno justifies strong investor interest in a high-end childcare property for sale there.

Colliers International investment sales director Shoneet Chand, and colleagues Matthew Barnes and Matt Prentice, are selling the childcare property licensed for 120 children, at 62 Pokeno Rd. They point out that the village on State Highway 1 — located an hour from both Auckland and Hamilton — is experiencing a population boom, with strong demand for quality childcare one obvious outcome.

The property — which has a long-term lease to established childcare operator Educare — is for sale by deadline private treaty closing at 4pm on March 20, unlessit sells earlier.

"Thousands of new homes are in the pipeline, while the Waikato District Council is pumping more than $32 million into a new library, roading, and upgraded water and power infrastructure," Chand points out.

"With all this development, Pokeno's population is projected to explode from 3000 to 12,000 by 2045. The area will be particularly appealing to young families, who are able to buy new, standalone homes on decent sections for well under the median house price in Auckland.

"This property has a new building constructed to modern standards, a 15-year-lease, a proven tenant covenant and a location with huge growth potential."

Chand says Educare is an established operator with 17 early childhood centres nationwide.

The lease earns $312,000 plus GST in net annual rent, with Educare paying all operating expenses.

"Backed by a bank guarantee, the lease offers fixed annual rental growth of 2 per cent, with market reviews every five years," he adds.

Two rights of renewal of 10 years each extend the final lease expiry date to August 2052.

Barnes says Signature Homes has covered the building with a 10-year warranty.

"Signature has delivered more than 135 childcare developments since 2002 and has been the Ministry of Education's preferred builder of childcare centres for the best part of a decade."

Barnes says the property is well located on a 2597sq m freehold site next to Pokeno School.

"The 773sq m building and covered terraces comprise a single-level, purpose-built early childhood education centre divided into four classrooms catering for different age groups, from babies to four-year-olds. It has been designed to meet current industry standards, both from a construction and business operation perspective.

"Notable features include double-glazed safety glass to ensure child welfare, acoustic ceiling tiles in play areas, energy-saving LED light fixtures, and motorised high windows for good natural ventilation. The property includes extensive outdoor play areas and generous on-site car parking."

Tenant Educare has been in operation since 2005 and has earned a strong reputation within the industry.

The company prides itself on offering quality childcare centres with a strong emphasis on family, sustainability and safe natural play.

Prentice says Pokeno is strategically located at the crossroads of SH1 and SH2, offering convenient access both north and south, as well as to Coromandel, Bay of Plenty and West Coast beaches.

"Famed for huge, cheap ice-creams, it is becoming synonymous with affordable, quality housing."