Strong growth boosts Pokeno childcare investment’s appeal
Pokeno’s transformation into a hive of new residential activity is expected to attract strong investor interest in a brand-new childcare property for sale with a long-term lease to an exceptional tenant.
Located at the foot of the Bombay Hills, an hour’s drive from both Auckland and Hamilton, the northern Waikato township of Pokeno is poised for a demographic boom that will fuel demand for quality childcare offerings.
Thousands of new homes are in the pipeline, while the Waikato District Council is pumping more than $32 million into a new library, roading, and upgraded water and power infrastructure.
With all this development, Pokeno’s population is projected to explode from 3,000 to 12,000 by 2045.
The area will be particularly appealing to young families, who are able to buy brand new, standalone homes on decent sections for well under the median house price in Auckland.
Shoneet Chand, Investment Sales Director at Colliers International, says astute buyers will appreciate the enormous opportunity this fast-growing location represents.
Together with colleagues Matthew Barnes and Matt Prentice, Chand is marketing a newly completed childcare property at 62 Pokeno Road, Pokeno, for sale by deadline private treaty.
Offers close at 4pm on Wednesday 20 March, unless the property sells earlier.
“This is a chance to acquire a bottom-drawer investment that truly tick all the boxes,” Chand says.
“The property’s exceptional fundamentals include a 15-year lease, proven tenant covenant, a brand-new building constructed to modern standards, and a location with huge growth potential.”
Licenced for 120 children, the property is tenanted by established childcare operator Educare, which operates 17 early childhood education centres throughout New Zealand.
The lease returns $312,000 plus GST in net annual rent, with Educare paying all operating expenses.
“Backed by a bank guarantee, the lease offers fixed annual rental growth of 2 per cent, with market reviews every five years,” Chand says.
Two rights of renewal of 10 years each extend the final lease expiry date to August 2052.
Barnes says the building was recently completed by reputable developer Signature Homes and is covered by a 10-year warranty.
“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.”
Barnes says the property is well located on a 2,597sq m freehold site next to Pokeno School.
“The 773sq m building and covered terraces comprise a single-level, purpose-built early childhood education centre divided into four classrooms catering for different age groups, from babies to 4-year-olds.
“It 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-saving LED light fixtures, and motorised high windows for good natural ventilation.
“The property includes extensive outdoor play areas and generous on-site car parking.”
Tenant Educare has been in operation since 2005 and has earned a strong reputation within the industry.
The company prides itself on offering quality childcare centres with a strong emphasis on family, sustainability and safe natural play.
Prentice says Pokeno is strategically located at the crossroads of State Highway 1 and SH2, offering convenient access to the north and south, the Coromandel, Bay of Plenty and West Coast beaches.
“Famed for its huge, cheap ice creams, the town is now becoming synonymous with affordable, quality housing.
“Its proximity to Hamilton and Auckland means Pokeno Village enjoys all the benefits of a country lifestyle without sacrificing the convenience of the nearby cities.”
Pokeno's structure plan, which allows for 150ha of residential development and 80ha of industrial land, is expected to be at capacity within 15 years.
Well underway, the Pokeno Plan Change includes 2,000 residential sections to the north, a revitalised town centre and a centralised sports park. Some 1,000 residential lots have already sold.
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