Magic Sparks Kapiti opening in former RSA premises
A childcare centre property opening this month in the former RSA premises in Paraparaumu, Kapiti Coast, is on the market for sale to an investor.
The Magic Sparks Kapiti centre at 110 Amohia Street is offered for sale by tender closing on Friday, September 29, unless sold by private treaty.
Marketing broker Dean Anderson of Colliers International Kapiti says the building was home to the local RSA since it was constructed in the 1950s.
It has now been completely refurbished into a new childcare centre, says Anderson.
“With a new 12-year lease, rights of renewal for a further 12 years and built-in rental growth, this property has all the makings of a solid, long-term investment.”
He says the well-located 1976sq m site and 890sq m building offer buyers a strong investment proposition, generating net income of $150,000 a year.
“This property’s location on the fast-growing Kapiti Coast, serving a large residential catchment, combined with the reputable tenant on a long lease, give it highly desirable investment attributes.”
These attributes include the stability of a long-term lease which could potentially extend to 2041, the security of fixed income growth and a tenant with several other childcare centres in its portfolio, Anderson says.
“The centre’s operator, Magic Sparks, is a well-established and well-regarded early childhood education provider.
“Magic Sparks is replicating its tried and true day care model here that it already operates successfully in its two centres in Palmerston North and another in Petone.”
The property is a good example of the trend in the property market for re-purposing older, obsolete buildings rather than building new, he says.
“We’re seeing many older buildings being given a new lease on life in various sectors across the commercial property market, and this is a great example of how an older building can be successfully adapted for a new type of use.”
The centre, which is licensed for 90 children, includes a single-level building with four main internal areas and fully ducted air conditioning throughout. The site also provides secure outdoor play areas and car parking.
The childcare sector has demonstrated strong growth in recent years, Anderson says.
“Demand continually outstrips supply in the childcare sector and this is likely to continue with the strong population growth forecast for the Kapiti Coast.”
The Kapiti Coast represents over 10 per cent of the Wellington region’s population and is one of the fastest growing areas in New Zealand.
Major infrastructure and commercial developments in the area include the Kapiti Expressway, Transmission Gully, the Wellington to Levin Northern Corridor Road of National Significance and the Kapiti Landing Business Park, a long-term development which is expected to provide around 5000 full-time equivalent jobs.
The government has also invested in early childhood education through subsidies, creating a stable industry and resulting in childcare centres becoming highly attractive business and investment propositions, he says.
Find out more about early childhood education investments here.
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