A portfolio of three exceptional early childhood education centres in Hawke’s Bay is available for purchase, giving buyers the opportunity to acquire substantial assets with a steady rental stream.
Two of the properties are located in the progressive and expanding Havelock North with the other in the Art Deco city of Napier.
Each centre is tenanted by a well-known local provider.
The total net annual rental income from the portfolio is $545,294 plus GST and operating expenses.
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The properties can be purchased individually or in one line.
Danny Blair, Director at Colliers Hawke’s Bay, has been exclusively appointed to market the properties for sale via deadline private treaty closing at 3pm on Friday 19 December, unless sold prior.
Sitting on a high-profile corner site at 27 Middle Road and 13 Porter Drive in the centre of Havelock North, the property is tenanted by Rockmybaby Havelock North and has two adjoining buildings that have approximately 290sq m of total floor area on a 1,012sq m landholding.
The centre caters for up to 54 children with capacity for further growth. Rockmybaby is a trusted name in childcare with operations in New Zealand, Australia, the United Kingdom, and Europe.
Their leases at the two buildings run until 30 April 2030 with two further rights of renewal for seven years each. The net annual rental income is $148,087 plus GST and the lease includes annual CPI increases and a market review in May 2035.
The Havelock North Early Learning Centre is located at 12 Campbell Street in Havelock North; it is a purpose-built complex in the residential zone that is immediately adjacent to the business hub of the Havelock North village.
The centre enjoys a prime position opposite the sought-after local primary school.
The building footprint has been recently expanded to accommodate increasing demand and now comprises three large stylish classrooms and a dedicated sleep room, manager’s office, resource room, kitchen and laundry, and storage facilities on a 1,628sq m freehold site.
Catering for up to 70 children, the experienced family-owned childcare operator will commence a new 10-year lease from 26 April 2026.
The property returns $185,029 plus GST in net annual rental income. Their lease includes one further right of renewal for five years and annual CPI rental increases from 2027 and market rent reviews in 2032 and 2038.
41 Kennedy Road in Napier is home to Nelson Park Kindergarten, which opened in 2018. The building is purpose-built, and Art Deco architecturally inspired, with cedar cladding and expansive glass.
The facility caters for up to 75 children and is situated opposite the popular Nelson Park Primary School on the major arterial road into Napier’s CBD.
The centre comprises two buildings.
Building A, located at the front of the site, includes two separate play spaces, a sleep room, office, and staff amenities.
Building B, the larger building at the rear, features two more expansive open plan play areas and great indoor-outdoor flow to the outdoor playground.
The property also benefits from 23 on-site car parks, a valuable asset for staff and families.
The experienced tenant has more than 11 years remaining on their current lease with two further rights of renewal of seven years each.
The total net annual rental income from the property is $212,178 plus GST and operating expenses and there are annual CPI rental increases and market reviews every eight years.
Blair says this is an investment opportunity that provides stable cashflow and will catch the attention of buyers seeking high-quality passive investments.
“Childcare centres are an appealing asset class for buyers given the sector is underpinned by significant government support,” Blair says.
“Tenants generally commit to long-term leases and the subject properties have built-in rental growth to the existing agreements, which will be desirable for buyers.
“This offering presents purchasers with flexibility because they could acquire one of the properties or the whole portfolio.”
- Supplied by Colliers
