An early childhood education centre in the rapidly growing area of Milldale in northern Auckland is available for purchase and will pique the interest of buyers looking to acquire a property with an established tenant on a long-term lease.
Located at 2 Archibald Drive, Milldale, the property has 624sq m of building area on a 1,827sq m freehold site.
Featuring a near-new building that was developed in 2020 by the highly experienced Signature Developments, MiniDale Explorers Limited operates the childcare centre that is licensed for 108 children.
The current occupant has a lease that runs until November 2035 and there are two rights of renewal for 10 years each in place, leading to a final expiry of November 2055.
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The lease agreement returns $352,578 plus GST and operating expenses per annum. There are 2 per cent annual rental increases, except every five years where a market rent review is scheduled (capped at 10 per cent).
Milldale is 25 minutes north of Auckland CBD and just 10 minutes from Albany (non-peak) and can easily be accessed via the Millwater exit from the Northern Motorway.
The property is zoned Residential - Mixed Housing Suburban Zone under the Auckland Unitary Plan.
Colliers Brokers 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 Thursday 27 February, unless sold prior.
Strategically positioned adjacent to a reserve, the centre benefits from over 70m of road frontage. It also provides convenient car parking and accessibility.
Chand, Director of Investment Sales at Colliers, says having a well-established tenant in place will be appealing for buyers.
"MiniDale Explorers is part of the Mini Explorers network and the provider runs three successful centres across Auckland with the others located in Warkworth and Waitoki," Chand says.
"The subject centre aims to provide high-quality early childhood care and education for young children and a supportive environment for parents and whānau. They intend to achieve this by providing superior facilities, quality educational equipment and programmes, and well-qualified and caring teaching staff."
Prentice, Director of Sales and Leasing at Colliers, says a strong tenant covenant and attractive leasing terms underpin this offering as childcare properties remain a coveted asset class among discerning investors.
"The current tenant has made a long-term commitment to this location and with multiple renewals available there is a considerable tenure available to them, Prentice says.
"There is built-in rental growth through the annual reviews while the five-yearly market reviews provide further scope to grow the income stream from the property."
Milldale is expanding quickly and is only moments from the Silverdale Centre shopping hub, Highgate Business Park, and Silverdale Industrial Centre. Silverdale offers a collection of key amenities, including a Pak'n Save, Bunnings, and The Warehouse.
Residents of Milldale are in zone for several public schools with a number of private schools also available.
By 2030, Milldale is expected to have more than 4,500 homes and this new residential subdivision has high-density townhouses and other dwellings.
Prasad, Investment Sales Broker at Colliers, says Milldale provides locals with an excellent lifestyle as well as access to cafes, bars, and restaurants, alongside recreational and medical facilities.
"The surrounding area also includes the many beaches of the Hibiscus Coast," Prasad says.
"With a growing population in Milldale there will be continued future demand for this childcare centre."
- Supplied by Colliers
