Christchurch purpose built centre.
Initial lease term 12 years, commenced 2009 with 2 further ROR of 6 years each, final expiry 2033.
Tenant is a highly credible public listed company; operators are very experienced being Lollipops Childcare.
Rental today is $240,407.58 plus GST and all normal outgoings.
Rent reviews are a very positive 3% each year for a period of 5 years, then in 6th year it is reviewed to market, but there is a hard ratchet meaning the rent can never go below the rent in the preceding year. So the worst case scenario is that rent goes up by 3% for 5 consecutive years, and in the 6th year you get a zero increase, and then in your 7th year the rent review reverts to 3% every year for another 5 years.
This property was damaged during the earthquake but has now been successfully repaired and renovated.
The value of this property based on the very favourable rent review mechanism and the strength of the public listed tenant, I believe, will be similar to the above 2 properties at 7% yield or thereabouts.
Estimated market value $3.4m or thereabouts [this could vary slightly].
As the nature of this business is highly confidential, we need to meet with you in our office prior to providing information. We can then pre-qualify you as a childcare purchaser and assist you with your enquiry.
