A premier Early Childhood Education (ECE) brand is the tenant in a new, purpose-built centre on offer in the gateway to east Auckland.
Set to be built next year, the 726 sqm centre will sit on a high profile, cross-leased corner section at 6/85 Ben Lomond Crescent, Pakuranga and house an early childhood centre and café managed by niche market brand, New Shoots.
Marketed by Colliers International brokers Jimmy O’Brien and Peter Kermode, this property is for sale by way of deadline private treaty, with offers closing 4pm, Thursday 10 December.
O’Brien says construction of the state-of-the-art centre will help address the scarcity of high-end early childhood facilities in the area.
“Pakuranga is identified as an area that is under-supplied in terms of top-end early childhood centre operators, so the market clearly exists for a good quality centre in that catchment.”
New Shoots is an established, privately-owned New Zealand company with Early Childhood Education (ECE) centres across the North Island, O’Brien says.
“This property represents an excellent passive investment opportunity given the length of the lease and the pedigree of the tenant.”
New Shoots’ vision is to ignite the passion in children to become lifelong learners and currently has upmarket centres in Sunnynook, Hamilton, Papamoa and Tauranga, O’Brien says.
“Each of their centres has specifically designed rooms for infants, toddlers and pre-schoolers and long waiting lists for children to attend.
“The company plans to make the Pakuranga facility a flagship centre and has committed to a 15 year lease of the early childhood centre and a 10 year lease of the café - which they plan to operate themselves - providing an annual net return of $349,000 for investors.”
Both facilities have been designed by an award-winning UK architect and will be built with high quality, durable materials, O’Brien says.
“The vendor has obtained resource consent and aim to have construction completed by the third quarter of next year.
“The centre will be licenced for 115 children and will offer generous indoor and outdoor areas, well in excess of Ministry of Education requirements.
“It will also offer a picturesque setting alongside the river and overlooking the golf course.”
Kermode says the property’s location, in a small pocket of land zoned Business 5 surrounded by residential land, means it would be a difficult investment opportunity to replicate.
“Given how densely developed Pakuranga is, it would very difficult to find the necessary land in the area to meet the high compliance requirements to build a new early childhood centre like this.”
Early Childhood businesses – more so than many other types – also place a premium on the stability of their location, Kermode says.
“Unlike other businesses that move for a multitude of reasons, for early childhood centres it is all about certainty of their location and the bond they create with their clients in the surrounding community.
“This is a prominent corner site close to two local primary schools, making it a natural site for an early childhood centre.”
Described as the eastern gateway to Howick, Pakuranga is quickly expanding with residential catchments, making the suburb the perfect candidate for more ECE centres, Kermode says.
“Given the development of the area, a well–located property like this one will be considered an excellent chance for investors to secure a brand new asset in a growing part of Auckland.”
There is also high participation in Early Childhood Education, with recent government statistics revealing there are 2,130 children currently enrolled in centres within the Pakuranga electorate, Kermode says.
“Right on the property’s doorstep is the Botany electorate, which boasts a pre-school enrolment rate of 95.9%.”