Triple-net childcare investment in Kilbirnie

A well-located commercial investment property backed by a nationally recognised childcare operator, long‑term lease security, and exposure to a resilient, essential sector is for sale in Wellington’s eastern suburbs.

The property occupies a prominent corner site at Rongotai Road and Salek Street in Kilbirnie and has operated as BestStart Rongotai for more than 20 years.

The centre operates from a well‑maintained 1920s residential‑style building, converted to deliver welcoming child‑centred spaces with excellent natural light. The layout includes dedicated play and sleep areas, kitchen facilities, staff amenities, and a secure outdoor play area with shade structures. A separate building at the rear of the property is used for office administration.

There is a total building area of 198sqm, the flat regular-shaped freehold site is 417sqm, and there is on-street parking.

The property is leased on a triple net basis with the tenant paying all outgoings, providing investors with a passive asset offering a simple, predictable return. The current lease term extends to 31 December 2031 with further rights of renewal through to 2044, and the lease incorporates three‑yearly CPI rent reviews, providing built‑in inflation protection.

BestStart is New Zealand’s largest provider of early childhood education, operating more than 260 centres with around 4,500 staff nationwide according to its website. A registered charity under the Wright Family Foundation, BestStart demonstrates strong operational performance, high parent satisfaction, and robust teaching standards, and participates in the government’s Early Childhood Education (ECE) funding scheme.

Mark Sherlock and Mark Walker of Bayleys Wellington Commercial are taking 178 Rongotai Road, Kilbirnie through a tender process closing Wednesday 15th April.

BestStart’s long‑term occupation of this Kilbirnie site reflects the centre’s established role within the community and the strength of the tenant covenant, says Sherlock.

“The operator has a long standing presence in Kilbirnie which is a lively suburb with a strong residential base, a high concentration of young families, and steady population growth that underpins ongoing demand for quality childcare services.

“With the property leased on a triple net basis, it has all the hallmarks of an easy, low-touch investment delivering proven returns through passive ownership of the land and buildings.”

The site’s prominent corner position is underpinned by Medium Density Residential zoning, offering favourable long-term redevelopment potential under the Wellington District Plan.

“The property sits on a major arterial route with high visibility, excellent public transport links, and easy access for families. It’s close to retail, hospitality, and medical amenities in an area with walkable terrain and strong community fundamentals, just 3km from Wellington’s CBD and adjacent to Wellington International Airport,” says Sherlock

“As it stands, the property works as a great little childcare centre providing supported care in a residential type setting, but investors will also take confidence from the credentials of the landholding in such a pivotal location.”