Brand new childcare centre in growing Milldale with a 15-year lease

Brand new childcare centre in growing Milldale with a 15year lease

A purpose-built new childcare centre in fast-growing Milldale is for sale with a new 15-year lease to an established and proven operator.

The property at 2 Archibald Drive, Milldale, is strategically located in a key Auckland growth hub that will benefit from strong future demand for childcare, with more than 4,500 new homes planned in the immediate vicinity by 2030.

The newly completed property has a brand-new lease to an experienced childcare operator, which returns $325,728 in net annual rent, with fixed 2 per cent annual rental increases.

Colliers International has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 25 November, unless it is sold earlier.

Director Shoneet Chand says it is a chance to secure a long-term passive investment with excellent fundamentals.

“This superb offering boasts proven tenant covenant, a high-growth catchment and quality new construction by a highly experienced childcare centre developer.

“It is located on a 1,827sq m freehold title in the heart of Milldale, which is only 25 minutes north of Auckland CBD and just 10 minutes from Albany.

“Milldale is an emerging community of high-density townhouses and homes, located directly opposite the growing residential community of Millwater, north of Silverdale. It is easily accessed from the Millwater interchange to the west of State Highway 1.

“The property is prominently located by a reserve and across from the local park, with more than 70m of road frontage and Mixed Housing Suburban zoning further underpinning its value.

“The childcare centre is leased to MiniDale Explorers, whose operator runs three successful centres in northern Auckland. It is licensed for 108 children and benefits from a team of caring, qualified staff who ensure children are given outstanding quality education and nurturing tailored to their individual needs.

“To assist in achieving this, MiniDale Explorers provides superior facilities, quality educational equipment and programmes, and an excellent ratio of educators to children.

“Childcare property investments are highly sought due to growing demand and security of tenure. This superb new offering is undoubtedly among the best to come to the market this year.”

Matt Prentice, Director of Colliers North Shore, says the 550sq m centre was purpose-built by reputable developer Signature Homes.

“Signature has delivered more than 135 childcare developments since 2002, and has been the Ministry of Education's preferred builder of childcare centres for the best part of a decade.

“The property has been designed to meet current industry standards, both from a construction and business operation perspective.

“Notable features include double-glazed safety glass to ensure child welfare, acoustic ceiling tiles in play areas, energy efficient heating and cooling heat pumps, energy-saving LED light fixtures, and plumbing that caters specifically to childcare centre requirements.

“The property has a large outdoor play area as well as extensive parking for 23 cars, including 16 stacked parking spaces.”

Prentice says the property’s lease includes market rental reviews every five years, capped at 10 per cent with a hard ratchet clause. There are two rights of renewal of 10 years each, extending the total lease term to 35 years.

“For investors seeking long-term security of income growth, this superb property should not be overlooked,” says Prentice. 

Related Experts

Shoneet Chand

Director

Auckland North

Shoneet is a Director at Colliers International and specialises in Investment & Development Sales over $2m across the wider Auckland region. Over the past 10 years he has been one of the most successful investment sales brokers in Auckland with a track record of significant sales second to none. He has had considerable experience in dealing with international purchasers and has completed a number of deals with investors out of the Middle East, Asia and Europe.

Shoneet was the top broker in his market for both 2014 and 2015 & once again placed in the top 10 brokers nationwide for Colliers in 2016.

In 2017, he transacted over $250 million of property, did 73 deals and was ranked 2nd in New Zealand.

In 2018, he was a finalist in the Commercial & Industrial Salesperson of the Year category which is judged nationwide across all agencies and again was the top broker in his market, being involved in over $300m of unconditional sales.

In 2019 he was again ranked in the top 5 brokers nationwide for Colliers and was involved in over $300 million of settled sales in the calendar year. 

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Matt Prentice

Director

Auckland North

Matt joined Colliers International in 2006 with a focus on mid to upper end industrial & investment transactions.  Specialising in tenanted investments, occupier representation through to vacant land / building sales on the North Shore, Matt was promoted to a North Shore Director in 2015.

In 2011 and 2012 Matt was awarded the "Golden Gavel" for Colliers New Zealand as the most successful auction sales broker across Colliers New Zealand. Matt has been the number one North Shore sales and leasing broker, 2011, 2012 and 2013.  In 2012, was a top 20 performer across Colliers New Zealand and has over $550 million of sales since joining colliers International.

In 2013, Matt was in the top 10 Highest Performing Brokers Nationwide and in 2014, he had a record year completing more than 50 transactions, and  finished in the top 10% of brokers in New Zealand.

In 2015, Matt completed over 60 transactions, more than any broker North of the Bridge, again finishing in the Top 20 brokers in New Zealand.

In 2016, Matt had a record year finishing top 10 in the country and was the top broker on the North Shore. 

View expert