Artist's impression of an elevated view of the new early childhood education centre at 6/85 Ben Lomond Crescent, Pakuranga.
Artist's impression of an elevated view of the new early childhood education centre at 6/85 Ben Lomond Crescent, Pakuranga.
A purpose-built early childhood centre to be built in Pakuranga in Auckland's eastern suburbs is for sale already tenanted.
"This state-of-the-art centre will help address a scarcity of high-end early childhood facilities in the area," says Jimmy O'Brien of Colliers International who, with colleague, Peter Kermode, is marketing the property for sale by deadline private treaty with offers closing at 4pm on Thursday December 10.
The 726 sq m centre will occupy a high profile, cross-leased corner section at 6/85 Ben Lomond Crescent, Pakuranga.
Niche market brand, New Shoots, will lease the property for $349,000 net annually - operating the childhood centre which will incorporate a cafe.
"New Shoots is an established, privately-owned New Zealand company with early childhood education centres across the North Island in Sunnynook, Hamilton, Papamoa and Tauranga," O'Brien says.
"The company plans to make the Pakuranga facility a flagship centre and has committed to a 15 year lease of the early childhood centre and a 10 year lease of the cafe - which it also plans to operate.
Jimmy O'Brien, of Colliers International.
"Pakuranga has been identified as an area that is under-supplied in terms of top-end early childhood centre operators, so the market is ready for a good quality centre in this catchment," he says.
O'Brien says the property represents an excellent passive investment opportunity given the length of the lease and the pedigree of the tenant.
"Each of their centres has specifically designed rooms for infants, toddlers and pre-schoolers and long waiting lists for children to attend. Both facilities have been designed by an award-winning UK architect and will be built with high quality, durable materials," O'Brien says.
"The vendor has obtained resource consent and aims to have construction completed by the third quarter of next year.
"The centre will feature generous indoor and outdoor areas that are well in excess of Ministry of Education requirements and will be licensed for 115 children. It will be constructed in a picturesque setting alongside a river and overlooking a golf course."
Artist's impression of a street level view of the new early childhood centre.
Kermode says the property's location, in a small pocket of land zoned Business 5 surrounded by residential land, means it would be a difficult investment opportunity to replicate.
"Given how densely developed Pakuranga is, it would very hard to find the necessary land in the area to meet the high compliance requirements to build a new early childhood centre like this."
Kermode says early childhood businesses place a premium on the stability of their location.
"Unlike other businesses that move for a multitude of reasons, for early childhood centres it is all about certainty of their location and the bond they create with their clients in the surrounding community.
Peter Kermode, of Colliers International.
"This is a prominent corner site close to two local primary schools, making it a natural site for an early childhood centre."
Described as the eastern gateway to Howick, Pakuranga is quickly expanding with residential catchments, making the suburb the perfect candidate for more early childhood centres, Kermode says.
"Given the development of the area, a well-located property like this one represents an excellent chance for investors to secure a new asset in a growing part of Auckland."
"A recent government study revealed there are 2130 children currently enrolled in centres within the Pakuranga electorate," Kermode says. "And right on the property's doorstep is the Botany electorate, which has a pre-school enrolment rate of 95.9 per cent."
