Auckland’s rapidly expanding north west is about to receive a premium childcare centre, the first of its standard in Kumeu.
The high quality 100-child childcare centre at 21 Access Road is owned and developed by highly respected and fast-growing operators Junior Junction, which will stay on to operate the facility on an initial 18-year lease term.
The freehold property is being marketed for sale by CBRE’s childcare team, Brad Visser and Richard Larman, offered for sale by Deadline Private Treaty closing on Tuesday 20 November at 4pm unless sold prior.
Brad Visser says that 21 Access Road is an outstanding investment opportunity offering long-term, built-in rental growth with a high quality operator in an area of Auckland that is growing at pace, attracting young households and first home buyers.
“With its high-profile location, fast-growing catchment and strong demand, this is a superb chance to secure a very high quality and architecturally designed investment on a new 18-year lease in Auckland’s fastest growing region.
“The property is being developed by Junior Junction, a childcare group with over 10 years’ experience, who will operate the facility on an initial 18-year lease term. This is a very strong statement of the long-term quality being offered at 21 Access Road: an investment opportunity not to be missed.”
He adds that the centre must be sold before Christmas. “This investment will appeal to investors looking for superior construction and long-term, built-in rental growth, combined with the assurance that the current owner, which is a proven childcare centre operator with eight previous centres under the brand, will stay in this location as the tenant on a long-term lease.”
The property is a careful development of the former Baptist Church on the prominent 1,722sq m site on Access Road.
Designed by Waitakere Architects to offer a modern take on traditional countryside architecture, the centre is currently under construction and due for completion mid-2019.
Richard Larman says: “Retaining and building on the high ceilings and natural light, the architect - together with the operator - has carefully re-purposed the building to capitalise on the existing structure and extend to provide a high-quality facility for up to 100 children.”
Situated in a high growth location in Kumeu, north west Auckland, the centre is immediately adjacent to the Kumeu Showgrounds and surrounded by existing and new housing developments that are providing a minimum of 1,400 houses, says Visser.
“This property is right in the centre of Kumeu’s rapid growth. Three new, large housing developments are very close by. Over 200 homes are going in behind the New World, over 1,200 homes going in at Kumeu Huapai triangle, through Cabra Developments, and a few hundred more homes are under development north west of Huapai Town centre.
“Only a couple of hundred metres from State Highway 16, the property is close to Huapai town centre, residential areas and main shopping areas – not to mention offering an easy drop-off and pick-up location on the way into or out of Auckland.”
Larman says that as Kumeu is located 20 minutes off-peak from Auckland’s CBD it has been identified by Auckland council as a centre for growth in the region.
“The region has seen a surge in residential development to meet Auckland’s housing shortage. With population forecast to double over the next ten years, Kumeu is a strategic centre for the region.
“It’s easy to see why: this affluent community, with its countryside backdrop, is popular with new families benefiting from the lifestyle in the region. The area is known for its world-class wineries and restaurants, with an ever-expanding retail town centre on Auckland’s urban boundary.
“Childcare is particularly sought after where the residential catchment has increased and put pressure on the sector to meet this new demand. Childcare is particularly sought-after in fast-growing areas like Auckland’s north west, where the residential catchment skews towards younger households and first home buyers. This only adds to the desirability of this exceptional investment opportunity at 21 Access Road.”
He adds that the new Kumeu Primary School has been built to accommodate the high number of young families coming into the region – a situation he says is only expected to grow. “Huapai-Kumeu is an affluent and growing community. Many young families are coming into the area, and it is forecast to double in population in the next 25 years, which should provide steady growth for this investment.”
Junior Junction opened in 2007 with a mission to create an environment for teaching excellence where kids can also be kids; ‘where learning meets fun’. Welcoming children from three months old up to five years of age, the existing eight centres offer a wide age spectrum and flexibility for parents.
Giving enrolled children the best start possible, the passionate staff are highly trained and committed to creating memorable experiences for the children. Creative play, outdoor explorations and special day-trips encourage new discoveries and greater preparation for school and ensure Junior Junction remains a centre of high demand.
In the centres’ care, children learn an enormous amount through play and sensory experience, and then move on comfortably into primary school environments once graduating.
As the current owner and future centre operator at 21 Access Road, Junior Junction has taken an initial 18-year lease (plus three rights of renewal of six years each, taking the full term to 36 years from commencement) while retaining the responsibility of the current build until complete.
The lease will return $296,400 per annum net, with built-in rental growth linked to CPI, reviewed every other year at no less than 2% and no more than 4%.
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