Leased childcare centre properties are proving to be one of the most popular assets classes and are top of many investors’ lists.
A property has come to the market that answers this demand.
15-17 Saturn Place is a modern building with a childcare tenant on a 12-year lease, with pre-agreed rent increases for the duration of the current term.
Marketed by Andrew Bruce and Rob Meister from NAI Harcourts, the property is for sale by deadline private treaty with offers to be in by 3rd August 2017.
Bruce notes the childcare and early learning industry sector is attractive to investors.
“Childcare is a growth industry supported by Government funding and leases are generally long-term. 15-17 Saturn Place is an excellent example of this.”
Located in a central North Shore location, the property has easy access to the new Western Ring Route and SH1 north/south motorway, as well as exposure to Upper Harbour Highway.
Constructed in the early 2000s of permanent materials including pre-cast concrete panels and weatherboard, the property comprises a superbly presented two-level building of approximately 980.75m² plus 325m² of enclosed first floor deck and 37 carparks. It is a freehold unit title, and is one of five units on a large 5,538m² site.
Bruce says it is an established business located in a purpose designed and build premises, ensuring long term occupancy.
Parents have the benefit of easy access, lots of parking and safe drop off and pick up areas in the cul-de-sac street location. It is accessible from the wider North Shore area and is a popular choice with both parents and the business operator.
Learning Tree is licensed for 148 children. This is a significant business and the tenant is currently paying $305,000 net rent per annum. The lease has pre-agreed bi-annual rent increases of 3%, guaranteeing rental growth. Meister says this provides investor certainty over a long period and for future economic conditions that may be less buoyant than they are currently.
The property is for sale by deadline private treaty with offers closing 4pm Thursday, 3rd August 2017.