A property in one of Auckland’s most tightly held city fringe suburbs is available for purchase, offering buyers the opportunity to secure a rock-solid commercial investment that provides growth potential and a long-term lease in a premium location.
Sitting at 4 Atarangi Road, Greenlane, the longstanding childcare property – established in 1971 – is now offered to the market with a new 10-year lease that began on 1 May and runs until 2035. The lease provides $137,280 plus GST and outgoings in net annual rental income.
The agreement also includes 3.5 per cent annual rental increases and there are three rights of renewal for five years each, leading to a final expiry of 30 April 2050.
The property, tenanted by Greenlane Childcare Centre, is licensed for 48 children aged from 3 months to 5 years old.
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Set in a leafy residential street, the property is near key transport links, including the bus and rail networks, as well as the motorway.
The 900sq m freehold property is zoned Residential – Mixed Housing Urban Zone under the Auckland Unitary Plan giving investors long-term development options, adding to its versatility.
Colliers Brokers Ronal Prasad, Nikko Boxall, and Shoneet Chand have been exclusively appointed to market the property for sale via deadline private treaty closing on Wednesday 11 June, unless sold prior.
The main building at the property was originally constructed in the 1930s, while the rear classroom was completed last year. There is also an outdoor area that includes a sandpit for the children to play in and an extensive playground.
Prasad, Associate Director of Investment Sales at Colliers, says this investment opportunity is underpinned by a strong tenant covenant.
“Childcare centres are an appealing asset class for buyers given the length of lease agreements and the subject property features a tenant that has been in the location for more than 50 years,” Prasad says.
“The newly signed lease provides built-in rental growth that will also catch the attention of investors seeking a steady rental stream from predictable income.”
Boxall, Investment Sales Broker at Colliers, says Greenlane is a high-demand suburb with excellent connectivity.
“Located near Great South Road, the property is surrounded by retail amenities and is near a supermarket, as well as multiple transport options. It also benefits from off-street car parking,” Boxall says.
“Greenlane features a variety of dining options and recreational facilities such as Cornwall Park, enhancing its vibrancy as a place to live and work.”
Chand, Director of Investment Sales at Colliers, says the zoning means there is a long-term development angle that could be explored by prospective purchasers.
“As outlined in the Auckland Unitary Plan, the Residential – Mixed Housing Urban Zone is a reasonably high-intensity zone enabling a greater intensity of development than previously provided for,” Chand says.
“This means the property will hold appeal for passive investors alongside landbankers given it could be repositioned in the future.”
- Supplied by Colliers
