"The Government has also invested in early childhood education through subsidies, creating a stable industry and resulting in childcare centres becoming highly attractive business propositions."
Chand says likely buyers for the site would include developers, investors and owner occupiers. There is a clear opportunity here for someone to sign up a tenant and then build the centre to the operator's specifications. Given that the site sits directly between Birkdale Primary and Birkenhead College, it's likely several operators will be interested in leasing the centre once it is built."
Chand says there is also a strong opportunity for owner operators in the property.
"The property is being sold with vacant possession and resource consent already in place, paving the way for a buyer to purchase the site, build the childcare centre and run the business themselves."
The potential to develop a new facility with modern features will mean a childcare centre on the site could have a competitive advantage over other existing centres in the area, Kermode says.
"An emerging trend in childcare is towards modern, purpose built centres built to 100 per cent of new building standard and including features such as double glazing, air-conditioning, monitored security systems and natural ventilation.
"Parents have a wide choice when considering the childcare market nowadays, and as a result they are becoming more discerning about the quality of surroundings in childcare centres. There's also every chance that regulations will tighten around centre design, putting modern facilities at an advantage over older centres."
The proposed centre has been designed to provide room for future expansion of the 45-child licence, although any expansion would be subject to consents, Chand says.
He says a four-bedroom weatherboard house and sleepout are on the site that could be demolished to make way for a new, purpose-built childcare centre.
The location opposite Birkdale Primary School is also a key advantage, offering parents a high level of convenience in being able to drop off and collect children from both facilities in a single trip.
Birkdale is a well-established suburb on Auckland's North Shore where there are few opportunities to secure sites suitable for childcare, says Chand.
"There are few sites left in Birkdale suitable for redevelopment. There has also been vast areas of land re-zoned for higher density residential development, meaning that over time, population density will increase and land supply will tighten further."
