A purpose-built early childhood education centre in the heart of New Lynn in West Auckland is being presented to the market for sale and will pique the interest of prospective purchasers looking for a passive investment opportunity.
Located at 3145 Great North Road on a highly visible, 1,009sq m freehold corner site, the centre opened in June and has been very popular with a high level of new enrolments.
The multi-storey facility is tenanted by Blooming Buds New Lynn Limited and it is consented for 140 children. There is also an additional area for a separately accessed, dedicated training facility on the ground floor.
Blooming Buds is a reputable local operator that also has a centre in nearby Glen Eden that is fully subscribed, indicating the need for further childcare in this area due to a lack of supply.
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The tenant has a 12-year lease in place at the subject property that will begin on commencement of the sale with four further rights of renewal for five years each leading to a final expiry in 2057.
The net annual rental income from the property is $473,880 plus GST and operating expenses. The lease includes annual 2 per cent fixed increases beginning on the third anniversary of the commencement date. There is also a market rent review scheduled for year four and on renewal.
New Lynn's town centre is approximately 500m from the subject location, which includes well-known retail offerings such as The Warehouse, Bunnings, and New World. LynnMall is only a few minutes away and also provides a wide collection of shopping and hospitality options.
The property is zoned Residential - Terrace Housing and Apartment Buildings Zone under the Auckland Unitary Plan. This sought-after zoning is common in the surrounding area and has contributed to the development of more high-density housing.
Colliers Directors Shoneet Chand, Matt Prentice, and Ronal Prasad have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 20 August, unless sold prior.
The modern three-level building includes basement parking, multiple outdoor play areas, and a top-quality fit-out throughout the facility.
Chand, Director of Investment Sales at Colliers, says early childhood education centres remain a popular asset class among buyers due to their lengthy lease terms and continued demand for their services.
"There is built-in rental growth from this property that will be desirable for investors and this brand-new building presents magnificently," Chand says.
"Blooming Buds is a locally owned and operated childcare centre and the 12-year lease indicates their commitment to the location."
Prentice, Director of Sales and Leasing at Colliers, says the residential growth of New Lynn has driven a continued need for early childhood education facilities.
"New Lynn has gone through considerable regeneration in recent years following significant infrastructure investment. This is likely to continue given it is well served by public transport facilities and there is favourable zoning across much of the suburb," Prentice says.
"Auckland Council's New Lynn Urban Plan will contribute to its continued development into a vibrant metropolitan centre."
Prasad, Associate Director of Investment Sales at Colliers, says this is a strategic investment in a location set for sustained demand.
"This is a purchasing opportunity that ticks a lot of boxes and will draw the attention of discerning buyers looking for a bottom-drawer investment opportunity," Prasad says.
"With long-term development potential this is one that is not to be missed."
- Supplied by Colliers
