Childcare investment in growing community near Palmerston North
A childcare centre investment in the growing township of Ashhurst, a short commute from the regional hub of Palmerston North, is for sale with a 10-year lease to a secure national tenant.
Colliers International has been exclusively appointed to market 1-5 Pembroke Street, Ashhurst, for sale by deadline private treaty closing at 4pm on Thursday 12 July, unless sold prior.
Palmerston North Director Doug Russell, who is marketing the property with Auckland-based Investment Sales Director Shoneet Chand, says it is a solid low-risk investment.
“This well-located childcare facility services the growing Ashhurst area, which is home to many parents who commute to the nearby city of Palmerston North,” Russell says.
“This opportunity will appeal to any astute investor looking for a good long-term, low-risk investment to strengthen their portfolio.
“The property is on a new 10-year lease to national childcare operator Evolve Group, a market leader in education with over 120 centres nationwide.
“It is currently returning $110,000 plus GST in net annual rent, with three rights of renewal of five years each. The lease offers fixed annual rental reviews to CPI and market reviews on renewal.”
Situated on three separate freehold titles, the property offers a significant land holding of 2,173sq m and about 463.5sq m of buildings.
Chand says the property comprises two 1950s-era converted bungalows connected by an extension, along with three storage sheds, two detached garages, ample car parking and large play areas.
“The functional, well-presented childcare centre is licensed for 57 children. It has multiple access points, including a main entrance in the bungalow extension at the centre of the site.
“Outside, there are three distinct playgrounds designed for specific age groups, with a reasonably sized all-weather play surface, sandpit, timber fort and various other play equipment.
“Five car parks to the northern end of the site allow for child drop off and collection, while there is plentiful parking on the surrounding residential streets, given the low amounts of passing traffic, especially on Pembroke Street.”
Chand says the site has add-value potential, with scope for further redevelopment.
“The rear of the property comprises surplus land that could provide additional car parking or an extension of the current early childhood centre.”
Russell says Ashhurst is becoming an increasingly popular place to live for families wanting a village-type lifestyle with a city commute just minutes away.
“The township, located just 14km northeast of Palmerston North, is a satellite community of the city, with a 2013 census population of 2,778.
“With the recent closure of the Manawatu Gorge, Ashhurst has become the centre of Hawke’s Bay traffic which has seen a rise in vehicle numbers going through the town.”
Chand expects to see this passive investment opportunity snapped up due to its valued location and the quality of the centre itself.
Follow us on Facebook and Instagram.
Get the latest commercial real estate insights and property news.
Looking for commercial real estate? Try our property search or connect with expert commercial real estate agents today.
Need your real estate assessed? Work with our expert property valuation services team.