Purpose-built modern building in growing location with a proven tenant
A newly completed childcare centre in the high-growth Auckland community of Pukekohe is for sale with a 15-year lease to a proven operator.
Colliers International has been exclusively appointed to market 144 Kitchener Road, Pukekohe, for sale by deadline private treaty closing at 4pm on 29 May, unless it is sold earlier.
The 2,011sq m property is well located to capitalise on the huge projected growth in Pukekohe, which Auckland Council estimates will double in population to 50,000 residents by 2054.
Shoneet Chand, Investment Sales Director at Colliers, says it is a chance for investors to secure a foothold in the growing and stable early childhood education sector.
“This prime investment property boasts excellent fundamentals, including a long lease to a proven tenant, a purpose-built modern building and a location with huge growth potential.
“The facility is licenced for 105 children and tenanted by established childcare provider Educare, which operates 17 early childhood education centres throughout New Zealand.
“Educare has earned a strong reputation within the industry since its founding in 2005. It prides itself on offering quality childcare with a strong emphasis on family, sustainability and safe natural play.”
Matthew Barnes, Colliers’ South Auckland Director of Investment Sales, says the building was recently completed 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.
“With such strong developer credentials, backed by solid tenant covenant, this is a truly outstanding long-term childcare property investment.”
The 566.7sq m childcare centre has four activity spaces providing for different age groups, as well as a reception, two offices, staff room, kitchen, storage, laundry and separate staff and children’s toilets.
Three 83sq m activity spaces cater for up to 30 children each. An additional 43sq m activity space, for children under 2 years of age, also has a dedicated quiet room and changing station.
A 124.2sq m covered outdoor area provides access to a larger fenced play area.
Plentiful on-site car parking for staff, as well as child drop-off and collection, is provided at the front of the property.
Pukekohe Educare Limited is on a bank guaranteed 15-year lease returning $283,900 plus GST in net annual rent, with Educare paying the operating expenses.
Rental growth is fixed at 2 per cent annually, with market rent reviews every five years.
Two rights of renewal of 10 years each extend the final expiry to 2053.
The property is located only 2km south of Pukekohe’s town centre, near the urban-rural fringe where much new residential development is expected to take place.
Pukekohe is located about 50km southwest of Auckland’s CBD. It services its own growing population as well as the wider Franklin District, including the growth hubs of Waiuku, Pokeno, Tuakau and Karaka.
It is only eight minutes from State Highway 1, putting it within 45 minutes of Auckland’s CBD via car.
Pukekohe can also be accessed via SH22 from Drury, which is earmarked for substantial industrial, commercial and residential growth.
The Pukekohe Train Station is centrally located off Manukau Road, a main urban road through town.
Regular services provide an easy commute into Auckland’s CBD, which is an hour and 10 minutes from Britomart via train.
Pukekohe is home to many hospitality operators, national retailers, trade outlets, education facilities, industrial occupiers and sporting clubs and facilities.
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