Sound long-term investment is child's play

9:59 AM Saturday September 13, 2014 Colin Taylor

Artist's impression of the early learning centre planned for 2 Waipani Rd, Te Atatu Peninsula.

A new early learning centre being built on the site of a former fire station in Te Atatu Peninsula, West Auckland, is being marketed for sale to investors as a long-term, quality commercial property holding.

The planned centre at 2 Waipani Rd, Auckland is offered for sale as part of Colliers International's latest New Zealand Portfolio collection.

It is being marketed for sale by auction through Peter Kermode and Shoneet Chand and is due to go under the hammer at 11am on Thursday, October 9, at 151 Queen St, Auckland, unless it sells before auction day.

"This new property will have a well-established tenant in place, a new building and a long 15-year lease plus further rights of renewal," says Chand.

Construction is nearing completion and the centre is scheduled to begin operating as "The Fire Station by Kid Country" in November. It has resource consent for 100 children.

Kermode says the highly visible freehold 2046sq m corner site and 580sq m building offer investors a strong investment proposition.

"With a new 15-year lease, rights of renewal totalling a further 20 years, net rental income of $230,000 a year, personal guarantees and built-in rental growth by way of the Consumer Price Index and market rent reviews, this property has all the makings of a solid long-term commercial investment," he says.

"Combined with its location in a popular suburb serving a large residential catchment, we believe this property has highly desirable investment attributes."

Chand says the centre has been purpose-designed for Kid Country, which chose the location based on its popularity among young families.

"The site is in the geographical centre of Te Atatu Peninsula with three road frontages, just off busy Te Atatu Rd. It's a great location for a childcare centre, given the large numbers of young families which have been choosing to move to Te Atatu Peninsula, drawn by the suburb's wide range of amenities, good accessibility and more affordable house prices than central Auckland."

The building contains separate learning spaces to cater for nursery, toddler and preschool children, together with play areas, sleep rooms and other amenities.

The outdoor area is well-designed with 166 sq m of decking, gardens, a bike track, sandpits, forts and slides, providing plenty of play options for the children, says Chand. Seventeen car parks are also provided on site.

Kermode says Kid Country is a respected childcare operator, with one of the business' owners having developed and owned multiple centres in the past. "The firm already operates a very successful centre in Tauriko, just outside Tauranga where it is known as an experienced boutique early learning provider."

He says Kid Country provides quality childcare education with more space per child and higher staffing ratios than Ministry of Education requirements.

"The learning environments are specifically designed to challenge children in all aspects of their physical, social and mental development. Kid Country places high importance on allowing children the freedom to explore and take risks in a warm, nurturing and safe environment."

Kermode says the property was chosen as a childcare site because of its good accessibility and central location in the geographic centre of Te Atatu Peninsula.

"The site is located just to the north of the main village centre and within 10m of Peninsula Primary School.

"The motorway interchange is also only 2.5km away, giving easy access to downtown Auckland as well as the fast-developing western suburbs of Westgate and Hobsonville."

Kermode says the Te Atatu Peninsula, with its harbourside setting and relative closeness to the Auckland CBD, has become a popular residential suburb with homes in a range of price brackets, city views, beaches and a strong community spirit.

The village centre has cafes and restaurants, banking, a new library and community centre, a supermarket and various other retail outlets. Recreation amenities include parks, extensive coastal walkways with views over the harbour to the CBD, sporting grounds and boat ramps.

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