How quality childcare property creates long-term value

In commercial property, quality (of the building, location and tenant) is typically a good indicator of long-term performance.

With childcare centres, quality is defined by the practical design decisions that make a centre easier to run, safer for children and more resilient for operators. These details aren’t always obvious from the outside, but have a direct impact on the long-term performance of the properties.

We recently caught up with Trudie Kroef, Owner & Operations Director at Nurture Early Learning, the operator at our 145 Hibiscus Coast Highway property. Trudie delved into why quality childcare is essential infrastructure for growing communities and creating a diverse workforce.

Design that supports how centres actually operate

Most people see a childcare centre as one building with a few rooms. Operators see it very differently: they see movement, flow, hygiene, staffing logistics, and the need for children to transition safely and calmly through their day.

The property at 145 Hibiscus Coast Highway reflects the type of design we actively look for:

• Breakout spaces that keep the day running smoothly: Upstairs rooms and separate dining areas give teachers flexibility and help centres maintain a calm, structured environment. Children can rotate through different areas, giving main rooms time to air out and reset.
• Buildings designed for New Zealand weather: UV levels in New Zealand are high, and summers are getting hotter. Centres with treetop or upper-level play areas provide shaded, cooler environments on hot days. In winter, these same spaces become warm, sheltered areas where children can stay active without being exposed to the elements.
• Clear separation between learning and food areas: In many older or cheaper centres, food is prepared or served in the same spaces children learn and play. In well-designed centres, food service is deliberately separated. This improves hygiene, reduces risk, and creates smoother routines throughout the day.

These features may seem like "nice-to-haves", but they directly shape enrolment stability, parent satisfaction and operator performance.

Quality design means stronger operators and longer leases

Operators perform better in buildings that support the way childcare works in real life. When a centre is designed well, you typically see:

• Higher enrolment stability, because families prefer centres that feel calm, clean, and structured.
• Better staff retention, because the environment is easier to manage and safer to navigate.
• Smoother day-to-day operations, reducing disruptions that can affect revenue.
• Better long-term occupancy, as operators prefer to stay in buildings that help them deliver quality care.

These are the drivers behind resilient commercial property returns. Not speculation or short-term trends, but properties that remain relevant and functional over time.

Why this matters for PMG investors

PMG’s approach has always been centred on long-term value: good locations, good buildings, strong tenants and professional management.

Childcare property aligns well with that philosophy. While the sector has consistent demand, it’s the quality of the environment and the strength of the operator that ultimately determine how a lease performs.

Nurture Early Learning is a clear example of what we look for when selecting properties for PMG portfolios: purpose-built facilities that support healthy occupancy, consistent operations and long-term tenant satisfaction.

Learn more about investing in high-quality New Zealand childcare property, including the current offer we have available in the PMG Direct Childcare Fund, here.

Disclaimer: The information in this blog is of a general nature and was current as at October 2025. It is not intended to be regulated financial advice for the purpose of the Financial Markets Conduct Act 2013 and does not take your individual circumstances and financial situation into account. As with any investment, commercial property carries risks, including the risk of loss of capital. Past performance is not a guarantee of future results. PMG does not provide financial advice about whether an investment in one of its funds is right for you. Please seek advice from a licensed financial advice provider before making any investment decisions.