The land and buildings housing a modern, purpose-built suburban childcare centre in a growing residential catchment has been placed on the market for sale.
The property at 21 Park Hill Road, Birkenhead, on Auckland’s North Shore, is occupied on a long-term, bank-guaranteed lease by childcare provider, the KidsCo Early Learning Centre.
Located in an area with a growing suburban population, and with ready access to North Shore employment hubs and Auckland’s central business district, the facility was purpose-built to a high specification for childcare in 2017. It is now being targeted for sale as a ‘bottom-drawer’ investment for passive commercial property investors.
The premises at 21 Park Hill Road are fully leased to KC Birkenhead Limited, trading as the KidsCo Early Learning Centre, which holds a license for the care of 35 children at the site. The tenancy generates annual net rental income of $95,550 plus outgoings and GST per annum.
The childcare operator’s 15-year lease runs through to 2035, with a further seven-year right of renewal extending to 2042. The lease is covered by a bank guarantee and includes annual rental increases linked to the Consumer Price Index, plus three-yearly market rent reviews.
The Park Hill Road property is now being marketed for sale by deadline private treaty closing on 22 October (unless sold prior), through Bayleys North Shore Commercial.
Salespeople Matt Mimmack and Yan Davies said the premises consisted of a single-storey building with a floor area of approximately 178 square metres on some 716 square metres of freehold land with onsite parking.
“The property was purpose-built to a high specification, and to the new building standard,” said Mr Mimmack.
“The modern weatherboard structure with iron roof gives way to a secure, self-contained outdoor play area to the rear. There is a paved parking area for staff and parents at the front. High-quality safety fencing extends around the site’s perimeter, with a dual-entrance driveway offering easy access from Park Hill Road.”
The Park Hill Road property is zoned Residential – Mixed Housing Suburban under Auckland Council’s unitary plan. “This is the most widespread suburban residential zone. While much of the existing housing is one or two-storey, mainly standalone buildings, this zone enables intensification including an allowance for two-story attached housing.
“The Residential – Mixed Housing Urban zone, which begins two properties up from the Park Road site, encourages even greater density with a general allowance for three-storey, predominantly attached dwellings,” said Mr Mimmack.
“This property’s location within a popular suburban area subject to ongoing residential intensification will further grow the catchment of families seeking local childcare services into the future.
“This, combined with the centre’s premium offering, based on relatively low child numbers in a high-spec, purpose-built facility, will underpin future demand,” Mr Mimmack said.
Ms Davies said the site was within convenient driving access to employment hubs in Northcote, Takapuna and Wairau Park as well as Auckland’s central business district. This enabled convenient drop-offs and pick-ups of young children for parents en route to and from work.
“The site is also strategically positioned near Birkenhead Primary School, Birkenhead College and the local library and it also benefits from nearby shopping centres, cafes and sports grounds,” she said.
Ms Davies said Auckland’s fast-growing population, combined with New Zealand’s high childcare participation rate, had driven a significant lift in demand for early childhood education over the past decade.
Nearly two-thirds of all pre-school aged children attend early childhood education, with the number rising to 95 percent among four-year-olds, according to the Ministry of Education’s 2019 census of early childhood education services.
“Childcare businesses also benefit from the security that comes with the government-funding of much of their income, through the provision of 20 hours a week of free childcare for most New Zealand children,” said Ms Davies.
“With an experienced operator in place on a long-term lease, with built-in growth and the reassurance of a bank guarantee, the property at 21 Park Hill Road will be of interest to investors seeking a bottom-drawer, passive investment in commercial property,” she said.