Childcare investment in Auckland's growing northwest
A recently built, architecturally designed childcare centre with a new 15-year lease to a top early childhood education provider is for sale in the flourishing Auckland suburb of Hobsonville.
New Shoots Hobsonville opened in April 2018 and the centre, licenced for 125 children, is already operating at almost full capacity, less than a year later.
Colliers International brokers say this exceptional investment opportunity is underpinned by evident strong demand for quality childcare in Auckland’s fast-growing northwestern suburbs.
The freehold property at 102A Hobsonville Road is for sale by deadline private treaty closing at 4pm on Wednesday 3 April, unless is sells earlier.
Shoneet Chand, Investment Sales Director at Colliers, says the purpose-built childcare centre is strategically positioned in the centre of Hobsonville’s thriving commercial precinct.
“With a market-leading tenant on a new 15-year lease, this really is an outstanding opportunity to secure one of the finest childcare centre properties currently operational in Auckland.
“Stunning architecture, a stylish fit-out and superb investment fundamentals make this an ideal bottom-drawer investment.”
The property comprises a 694sq m building with a 790sq m outdoor play area on a freehold site of some 2,036sq mm, subject to subdivision.
Chand says the building was designed by Herbst Maxcey Metropolitan Architects, one of New Zealand’s premier architectural practices.
“The centre is close to Hobsonville Primary School, making it ideally located for growing families with both preschool and school-aged children.
“It is operated by New Shoots, one of the fastest-growing providers within the established and stable early childhood education sector.”
New Shoots is signed to a new lease returning $390,000 plus GST in net annual rent. Market rental reviews are every four years, with inflation-indexed rental reviews every year in between.
Two rights of renewal of eight years each extend the final lease expiry date to April 2049.
Josh Coburn, Director of Colliers International’s West Auckland office, says the property offers strong tenant covenant, with a long lease backed by a guarantee.
“New Shoots has an excellent reputation for quality learning, with Education Review Office reports within the top 10 per cent nationwide.
“Established in 2010, the company operates 10 childcare centres between Auckland and the Bay of Plenty, with another seven centres due to open within the next two years.
“New Shoots is run by three owner-operators with more than 60 years of collective experience within the sector.
“The company also benefits from strong financial backing. The Gillespie Investment Trust purchased a substantial share of the business in 2015, enabling it to expand significantly, while Milford Asset Management’s private equity fund also invested in a large share of the business last year.”
Herbst Maxcey Metropolitan Architects designed the centre using a variety of forms and scales to relate to both the existing residential environment and the new business park in which it sits.
West Auckland Broker Craig Smith says the building’s facade is broken into smaller elements to visually reduce the scale of the building, while the materials are in keeping with both high-end residential and modern business settings.
“The series of sloping roofs are configured to introduce scale, but coupled with a high degree of glazing that allows both natural light and visual permeability through the building.
“Externally cobblestone pavers used in driveway establish a visual cue for drivers to slow down from the asphalt entry area and indicate a ‘shared space’ for cars and pedestrians.
“The garden areas and playground area of the childcare itself visually extend the building and better integrate the building into the landscape.
“Planting is integrated into the car parking areas to soften this area provide visual screening and delineate pedestrian walkways and priority.
“Buyers will instantly appreciate the quality and thought that has gone into this centre and inspections are welcomed on an appointment-only basis.”
The property is located about 20km northwest of Auckland’s CBD and within easy commuter distance of the CBD, West Auckland and North Shore suburbs.
Hobsonville forms part of the Auckland Upper Harbour Local Board and is easily accessed from both the west and the north via State Highway 18.
SH18, which feeds off SH16 to the west and extends to Constellation Drive to the east, provides convenient access to the development via either Trig Road or Brigham Creek Road.
Hobsonville is currently undergoing enormous development both from a residential and industrial perspective with full support from Auckland Council.
Hobsonville Point to the east is a 167ha former NZ Defence Force site that, upon completion, will be home to more than 10,000 residents in 4,500 homes.
There are currently some 2,770 residents living there with 1,108 houses having been completed and another 448 homes under construction.
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