Premium-grade passive investment with future development potential.
A near-new childcare centre and cafe is for sale in Auckland’s popular Pacific Rise business park, providing a chance to acquire a premium-grade passive investment with future development potential.
The purpose-built property at 3 Pacific Rise, Mt Wellington, comprises an architecturally designed, low-maintenance building on a large freehold site with 26 car parks.
It is tenanted by a complementary pairing of an established childcare operator and a hospitality business with a weighted average lease term of 11.4 years.
The leases return $369,457 in split-risk annual income with all normal operating expenses recoverable as outgoings, making the property an ideal bottom-drawer investment.
The property also boasts future redevelopment potential thanks to its sought-after location, large 2,295sq m site and favourable Business Park zoning which allows development up to 21m.
Colliers International brokers Shoneet Chand, Kris Ongley and Simon Child have been exclusively appointed as sole agents to market the property for sale.
Offers by way of deadline private treaty close at 4pm on Wednesday 4 December 2019, unless the property sells earlier.
Chand says the property is superbly located in a popular and growing location.
“There’s been enormous growth in Mt Wellington in recent years, highlighted by Kiwi Property’s ongoing expansion of the nearby Sylvia Park shopping centre and office development, which is only a short drive away.
“The sale of 3 Pacific Rise is a chance to acquire a premium investment in this sought-after location.
“The property is situated within the popular Pacific Rise Business Park, which boasts top national and multinational tenants including BMW, Mercedes Benz, Ecolab and Geneva Finance.
“It is anchored by experienced early childhood education provider Lightbulb Learning, which has a strong trading history and currently has an impressive 80 per cent occupancy.
“The rental income is supplemented by cafe tenant Hamlin Eatery, which is popular with surrounding office workers as well as parents from the childcare centre.
“The property was designed and constructed to the highest industry standards of innovation and sustainability by award-winning Collingridge and Smith Architects and built by LEP Construction.
“The large landholding provides underlying value in a central Auckland location, while the zoning and flat contour of the site make it ripe for more intensive future redevelopment.
“As a long-term passive investment with future upside potential, this is an asset of the very highest quality.”
Ongley says the property comprises a 700sq m building on a large site with abundant sealed and marked car parks.
“The childcare centre of 550sq m is appealingly designed with age-separated playrooms, central facilities and a high stud, atrium-like hallway. It is licensed for 100 children, including 20 aged under two.
“A northwest-facing outdoor play area of 450sq m adjoins a large deck of 100sq m.
“The cafe is an attractive, modern space of minimalist design with polished concrete floors and floor-to-ceiling glazing.
“It has a total indoor area of 147sq m plus a north-facing outdoor seating area of some 78sq m.
“Access is easily made from customer parking immediately adjacent to the entrance.”
Lightbulb Learning occupies the childcare facility and 19 car parks on a 15-year lease from November 2017, expiring in October 2032.
The lease returns $283,616.24 in net annual rent. There are three rights of renewal of six years each, with final expiry in October 2050.
Every second year the rent increases automatically by the greater of CPI or +2 per cent of the current rent. Then every sixth year the rent is subject to a market review with a ratchet in place to the current rent and a cap at +5 per cent.
Hamlin Eatery occupies the cafe premises and seven car parks on an eight-year lease from November 2017, expiring in November 2025.
The lease returns $85,842.80 in net annual rent. There are three rights of renewal of four years each, with final expiry in November 2037.
Rental reviews are to CPI plus 2 per cent annually.
Child says the property is well positioned within 10km of the CBD and next to both of Auckland’s busiest arterial routes, State Highway 1 and Great South Road.
It is surrounded by the suburbs of Stonefields, Panmure, Penrose and Ellerslie.
“The property has strong amenity value with excellent proximity to transport, shopping and a growing residential catchment.
“Auckland CBD is a 15-minute drive away, while SH1 also provides easy access south to many established industrial, commercial and residential areas including East Tamaki and Wiri.
“Sylvia Park is only 1km away, while the surrounding commercial population an provides excellent customer base for both tenants.
“To the west of the property lies Hamlin Hill Regional Park, an attractive natural environment that is perfect for the tenant mix.
“All of these features ensure the property is likely to perform well now and into the future.”
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