The land and building housing a highly functional early childhood education centre in suburban Hamilton have been placed on the market for sale – just weeks after the Government launched a programme to improve business dynamics in the niche education sector.

The pre-school play centre for sale trades under the name Flagstaff ChildCare, and is situated on a quiet tree-lined street in the Hamilton suburb of Flagstaff, where it is licensed to accommodate up to 40 children daily within a low maintenance brick and tile building originally constructed as a residential dwelling and later converted to commercial use.

All three and four-year-old New Zealand toddlers are entitled to 20 hours of Government-funded free early childhood education (ECE) each week. The types of early learning services available for you depends on where users live with options ranging from education and daycare centres such as Flagstaff ChildCare, through to kindergartens, Kōhanga Reo, playcentres, and Pacific Island early childhood groups.

Privately-owned Flagstaff ChildCare is one of more than 5,000 early childhood education services available in New Zealand, offering different services, facilities, hours, and costs. Some ECE providers have waiting lists.

The freehold residentially-zoned 846-square metres of land, and 172-square metres of rectangular-shaped building at 9 Halcione Place which house Flagstaff ChildCare are now being marketed for sale at auction on August 14 through Bayleys Hamilton. Salesperson Josh Smith said the property benefitted from operating in a quiet suburban location which made drop-offs and pick-ups highly convenient for parents with young children attending the centre.

“The streamlined and well-maintained single level Flagstaff ChildCare building features open-plan play zones, bathroom facilities specifically designed for small pre-school children, along with administrative offices, and segregated staff lunchroom and staff bathroom facilities,” Smith said.

“In addition, the rear of the property also encompasses a fully-fenced playground area on artificial grasse, while the front of the premises has staff and parental car parking for up to 10 vehicles utilising two separate driveway entrances off a shared private off-street yard area.”

Flagstaff Childcare’s tenancy at Halcione Close generates annual rental income of $78,451 plus GST and operating expenses. Flagstaff ChildCare is on a current lease running through to 2035, with three further five-year rights of renewal. The lease with Flagstaff ChildCare has built in rent increases linked to the consumer price index.

Earlier this year the Government gave the green light to slashing business operating regulations for the Early Childhood Education (ECE) sector to encourage more investment, and simplify rules for operators.

Regulation Minister David Seymour said: “The implementation of the recommendations represents a major shake-up of the sector’s outdated system. It is a great result for children, parents and ECE service providers.”

“By the end of next year ECE providers will be governed by a regulatory system which ensures regulations are focused on what matters…. child safety.”

Key changes include:

• Making requirements around qualifications for staff to be “more flexible, particularly for services in rural and lower socio-economic areas, Māori and Pasifika services, and home-based services”
• Cutting ECE licensing criteria by about 75 percent

and

• Removing the requirement for a childcare centre’s nominated “person responsible” to have an ECE teaching qualification

Smith said the new Government regulations would go some way in underpinning Flagstaff ChildCare’s tenancy at the Flagstaff premises – ultimately making it more attractive to any new owners viewing the property as a long-term investment.

“These changes, to be ratified by parliament by the end of the year, will increase clarity and practical support to ECE providers and could also drive ECE service providers throughout the sector to lift their service quality above the regulated minimum standards to enhance safety and education for children in their care,” he said.

“Flagstaff ChildCare already operates at a high standard within the well-presented and efficient urban location, and as a result is perfectly poised to capitalise on the anticipated growth in attendee numbers coming through the doors,” he said.

The latest proposed improvements to the early childhood education sector come after the release of last year’s Government budget, which increased funding for early childhood education services through the introduction of the FamilyBoost programme – a childcare payment scheme intended to support parents and caregivers of young children in managing childcare fees with a partial reimbursement.

Under the scheme, eligible households can get up to 25 percent of their weekly childcare fees reimbursed, to a maximum credit of $75 per week after the 20 Hours Free ECE and MSD’s Childcare Subsidy are taken into account.

Commenting on the subsidy and its positive impact for users, such as those taking advantages of the services at “Flagstaff ChildCare, Early Childhood Council chief executive officer Simon Laube said: “FamilyBoost should stimulate demand, and re-engage families with ECE centres – more demand for childcare does benefit ECE providers.”