A purpose-built early childhood education centre in Cambridge is available for purchase, offering buyers the opportunity to acquire a passive investment in a well-established neighbourhood.
Located at 22 Froude Street, Cambridge, the property features a 322sq m facility, designed and constructed in consultation with the current tenant in 2018.
The boutique centre sits on an 825sq m landholding.
It is one of two facilities run by experienced operators Little Sparrows Educare and is licensed for 50 children. The centre has always run at close to full capacity.
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The total net annual rental income from the freehold property is $130,000 plus GST and operating expenses. The tenant has a lease of 12 years with two further rights of renewal and a final expiry date that will be 24 years from commencement.
Cambridge, the most populous town in the Waipā District, is home to approximately 22,700 people and the Waipā District Council has a dedicated growth strategy to manage a staged approach for new developments to accommodate future industrial, commercial, and residential areas that will be supported by the requisite infrastructure.
The subject location is approximately 28km from Hamilton CBD.
Colliers Hamilton Brokers Alan Pracy and Justin Oliver have been exclusively appointed to market the property for sale via deadline private treaty closing at 3pm on Tuesday 24 February, unless sold prior.
The centre's popularity in the local community is underscored by the way it has not run at less than 95 per cent of capacity for the past two years. It is also only a short walk from nearby Leamington Primary School.
The unique indoor and outdoor facilities at the centre have been designed to provide a learning environment where children can explore and play, while they grow in family-like surroundings.
Pracy, director at Colliers Hamilton, says this offering gives buyers the chance to secure an A-grade passive investment that was built by the reputable Signature Homes.
"This immaculate single-level centre provides effortless functional flow throughout and has proven sought-after among the local community as an education provider for their children," Pracy says.
"The investment opportunity is underpinned by a strong tenant covenant through Little Sparrows Educare and the built-in rental growth will catch the eye of discerning buyers."
Oliver, associate director at Colliers Hamilton, says childcare properties continue to hold appeal as an asset class given the strong underlying fundamentals.
"With tenants often taking long-term leases, there is an element of security that is attractive to purchasers and properties in high-growth areas continue to draw demand from families to enrol their children in them," Oliver says.
"This is a premium investment opportunity and represents a rare chance for buyers to acquire a property in the tightly held Cambridge commercial market."
- Supplied by Colliers
