The childcare facility is a substantial rebuild of an existing building, so very close to being purpose built. Licensed for 100 children, the centre is less than 5 years old and the tenant is trading profitably with close to 80 children attending the centre.
A 6th Edition ADLS lease will be established with the tenant, at a commencement rental of $223,600 plus GST and all normal outgoings. A 12 year term, plus 2 RORs of 6 years each, and rent reviews yearly at CPI or 1.25% whichever is the greater. The tenant will provide a 6 month bank bond.
This opportunity provides a 6.2% yield with the potential sale of the business in the not too distant future. The vendor of the property also owns the childcare business and the landlord may be given the first option to buy the business in the future at a pre-agreed price earnings multiple.
There is a current registered valuation for the property at $3.4 million. As such, the purchase price may well be capable of negotiation closer to this registered valuation.
Asking Price Freehold $3,600,000
Call Anthony Gilbert - 021 784 865 today for more information.
For a confidential discussion, please complete our online confidentiality agreement.
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