Childcare centre land and building for sale

KeepHealthCare.ORG – Childcare centre land and building for sale

Monday, 18 June 2018, 2:28 pm
Press Release: Bayleys

Childcare centre land and building offers investment
portfolio building block

The land and buildings
housing one of Auckland’s biggest and most modern
childcare centres has been placed on the market for

The purpose-built property at
6/85 Ben Lomond Crescent in Pakuranga houses New Shoots
childcare centre and the adjoining Source Café. The
single-level property generates a combined rental of
$420,973 plus GST and outgoings per annum.

The premises
was constructed in 2016 and has been certified as 100
percent compliant with New Building Standards (NBS). The
childcare space within the building is licensed to
accommodate up to 115 children daily – making it among the
biggest such venues of its type in Auckland.

The 756
square metre day care and café building sits on 1,899
square metres of freehold land on a cross-lease title with
car parking for 33 vehicles. New Shoot’s portion of the
building encompasses a substantial outdoor play area
containing climbing structures, obstacle courses, grassed
areas, and sand pit.

The property – but not the
childcare or café businesses operating within them – is
being marketed for sale by private tender through Bayleys
Manukau, with tenders closing at 4pm on June 27.

Manukau salespeople Shane Snijder and Dave Stanley said the
near-new quality of the building and high standard of
property amenities and play zones within it, placed the New
Shoots Pakuranga site among the upper-echelon of its peers
in terms of customer facilities for the young

“For example, the fully fenced perimeter not only
keeps children as secure as possible while in care, but also
allows for a park-like view over the neighbouring Cascade
Creek wetland bush which runs down from nearby Lloyd Elsmore
Park,” Mr Snijder said.

“Inside, the open-plan layout
and design themes of the play space zones, reception areas,
staff amenities, food preparation facilities, and bathrooms,
all mirror a very modern proven templated model which
ensures consistency of product offering across the New
Shoots group.

“Similarly, the expansive sealed car
parking yard within the property make it as easy and safe as
possible for children to be dropped off and

New Shoots Childcare is on an 18-year lease
at the site, with two further six-year rights of renewal,
paying a net rental of $345,973 plus GST per annum. Rental
increase are fixed at 1.5 percent annually, with market
reviews every four years.

The company is a major operator
in the pre-school childcare sector – with additional sites
in the Auckland suburbs of Westgate, Hobsonville and
Sunnynook, as well as a branch in Hamilton, and three
locations in Tauranga.

Meanwhile, Source Café is on a
five-year lease at 6/85 Ben Lomond Crescent, with two
further five-year rights of renewal, paying a net rental of
$75,000 plus GST per annum. Rental reviews are undertaken
every two years.

“Source Café draws a core clientele
from parents dropping off and picking up their children from
neighbouring New Shoots throughout the day, as well as
servicing employees at the numerous businesses located at
the numerous adjacent light industrial premises,” Mr
Snijder said.

“It’s a mutually-beneficial and totally
sustainable business model for the café

Since 2008, the proportion of pre-school Kiwi
children enrolled in early childhood education (ECE) and the
amount of time they spend there have both risen. The number
of children has risen from 93.6 percent to 96.6 percent,
with time spent in ECE has reached an average of 21.7 hours
a week, up from 13.5 hours in 2000. The Government fully
funds 20 hours of care a week for all children aged three,
four and five. Auckland has some 1,407 ECE centres.

Stanley said south-east Auckland’s
population growth, combined with more families with
two-parents working full-time, had been among the key
drivers of growing demand for childcare places over the past
decade – and underpinned the development of the Pakuranga
site for New Shoots as the anchor tenant.

“The location
of New Shoots’ Pakuranga branch is in an area zoned
business – Light Industrial which has seen substantial
growth over the past 20 years. Many of those factories,
warehouses, and retailing sites have staff members with
young families…. that is children who require day care
facilities. And New Shoots has capitalised on that demand by
creating such a substantial operation,” Mr Snijder

© Scoop Media

New Zealand

Bayleys is New Zealand’s largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.

Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.

No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.



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