The more than 1,900-square metre corner site in the heart of Paraparaumu is fully leased to Magic Sparks Care and Learning Limited, a respected early education operator with four sites across the lower North Island.

Positioned amid a booming population with easy access to local arterials and Wellington commuter links, the property used to house the Paraparaumu RSA. It was extensively refurbished and transformed into a highly functional childcare facility in 2017.

Magic Sparks Kapiti is licensed for 65 children, with the capacity to grow to over 90. The centre follows a play-based learning philosophy. It boasts a high percentage of qualified teachers and teacher/child ratios that exceed minimum Ministry of Education standards.

Its tenancy generates annual net rental income of $198,000 plus outgoings and GST, on a lease that runs through to 2029 with two further six-year rights of renewal. The lease is covered by a personal guarantee and comes with both CPI and market rent review provisions.

The property at 110 Amohia Street, Paraparaumu, is being marketed for sale by Jo Stewart and Mark Walker of Bayleys Wellington. Sale is by way of a tender closing on Wednesday 28 September.

Stewart said the property consisted of an approximately 890-square metre single-storey building on some 1,976-square metres of land, including large outdoor play areas and dedicated parking.

“Taking full advantage of the generous open-plan layout and existing commercial amenities of the former RSA building, this is truly an outstanding example of conversion to an alternative use.

“The internal layout features cleverly converted areas that create a warm and inviting space for staff and children.

“The front entrance leads through to reception and staff offices, then a large open-plan space which is the heart of the centre. The entrance is secured with gate and access code, providing peace of mind for parents, children and staff.

“Various rooms lead off this main area and provide for separate sleeping, bathroom, kitchen, and smaller educational zones plus another large space with additional care areas. Two separate outdoor spaces provide an exciting, sunny and creative environment for children,” Stewart said.

Walker said the centre offered reminders of its RSA past with poppy symbols in the outdoor play areas. It sits beside the war memorial and memorial hall and sports ground.

“Situated just north of the main Paraparaumu town centre, this established childcare facility is handy to local arterials and just minutes from bus and rail connections. This positions it superbly for parents to drop off and pick up their children en route to and from work,” said Walker.

The site is zoned General Residential by Kapiti Coast District Council, supporting licensed childcare as a permitted activity.

Walker said it was ideally placed to capitalise on rapid growth and development on the Kapiti Coast.

“Kapiti is expected to grow by an estimated 32,000 people to 90,000 by 2051.

“Upcoming government requirements will reflect in changes to the district plan which will see continued growth. This will allow for more intensification of residential housing, flexibility in mixed-use zoning, and increased building height limits in identified areas.

“These changes will support substantial growth in the residential catchment, ensuring strong demand for services like childcare into the future.

“Paraparaumu already enjoys a high level of public and private amenities, from libraries, swimming pool and sports fields to a wide range of large-format retail along with character boutiques, bars, cafes and restaurants,” said Walker.

The Magic Sparks site is about two minutes’ drive from the Coastlands shopping precinct and Paraparaumu train station, and only a few minutes from the Kapiti Expressway/State Highway 1.

“This convenient, growing location, along with the quality of the tenant and lease make the Amohia Street site an attractive ‘bottom-drawer’ investment for passive commercial property investors. Adding even greater assurance to investors is the fact that much of the income for childcare businesses is government-funded, through the provision of up to 20 hours a week of free childcare for most New Zealand children,” said Walker.

Click here for more information on the listing.