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Brand new childcare centre in growing Milldale with a 15-year lease - Colliers

Fuseworks Media
Fuseworks Media

A purpose-built new childcare centre in fast-growing Milldale is for sale with a new 15-year lease to an established and proven operator.

The property at 2 Archibald Drive, Milldale, is strategically located in a key Auckland growth hub that will benefit from strong future demand for childcare, with more than 4,500 new homes planned in the immediate vicinity by 2030.

The newly completed property has a brand-new lease to an experienced childcare operator, which returns $325,728 in net annual rent, with fixed 2 per cent annual rental increases.

Colliers International has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 25 November, unless it is sold earlier.

Director Shoneet Chand says it is a chance to secure a long-term passive investment with excellent fundamentals.

"This superb offering boasts proven tenant covenant, a high-growth catchment and quality new construction by a highly experienced childcare centre developer.

"It is located on a 1,827sq m freehold title in the heart of Milldale, which is only 25 minutes north of Auckland CBD and just 10 minutes from Albany.

"Milldale is an emerging community of high-density townhouses and homes, located directly opposite the growing residential community of Millwater, north of Silverdale. It is easily accessed from the Millwater interchange to the west of State Highway 1.

"The property is prominently located by a reserve and across from the local park, with more than 70m of road frontage and Mixed Housing Suburban zoning further underpinning its value.

"The childcare centre is leased to MiniDale Explorers, whose operator runs three successful centres in northern Auckland. It is licensed for 108 children and benefits from a team of caring, qualified staff who ensure children are given outstanding quality education and nurturing tailored to their individual needs.

"To assist in achieving this, MiniDale Explorers provides superior facilities, quality educational equipment and programmes, and an excellent ratio of educators to children.

"Childcare property investments are highly sought due to growing demand and security of tenure. This superb new offering is undoubtedly among the best to come to the market this year."

Matt Prentice, Director of Colliers North Shore, says the 550sq m centre was purpose-built by reputable developer Signature Homes.

"Signature has delivered more than 135 childcare developments since 2002, and has been the Ministry of Education's preferred builder of childcare centres for the best part of a decade.

"The property has been designed to meet current industry standards, both from a construction and business operation perspective.

"Notable features include double-glazed safety glass to ensure child welfare, acoustic ceiling tiles in play areas, energy efficient heating and cooling heat pumps, energy-saving LED light fixtures, and plumbing that caters specifically to childcare centre requirements.

"The property has a large outdoor play area as well as extensive parking for 23 cars, including 16 stacked parking spaces."

Prentice says the property’s lease includes market rental reviews every five years, capped at 10 per cent with a hard ratchet clause. There are two rights of renewal of 10 years each, extending the total lease term to 35 years.

"For investors seeking long-term security of income growth, this superb property should not be overlooked," says Prentice.

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