The specialist property company said that despite ongoing uncertainty around funding for the 30 hours childcare offer, the market had not experienced a slowdown, and that demand from buyers and investors remained strong.
High street banks continue to view the sector ‘favourably’, the agents said, citing Lloyds Banking Group, Allied Irish Bank, Barclays Plc, HSBC and the Royal Bank of Scotland in particular, as banks that Christie & Co has worked with most recently.
One of the biggest deals of the year so far for the agents was the sale of First Class Childcare, a group of nine nurseries in the north of England, to Just Childcare, which now operates 32 settings in the region.
In its quarterly sector insight report, Christie & Co also said that this year's Budget could have a positive impact on the nursery sector.
The property company welcomed changes to business rates announced by the Chancellor in March, which will mean that nursery owners trading from premises with rateable values of less than £15,000 will now be exempt from paying business rates.
Nursery owners selling their businesses have also gained from the cut in Capital Gains Tax from 28 per cent to 20 per cent, with some transactions due to complete at the end of March put on hold until April when the tax cut came in.
However, the report also points out that if the funding and support for business owners is insufficient the childcare sector will not be able to grow and become resilient.
Courteney Donaldson, head of childcare and education, said, ‘Our specialist childcare team has enjoyed a very busy and buoyant Q1 2016. The high levels of activity that we are experiencing appear set to continue into Q2. Confidence amongst operators, purchasers, banks and investors remains incredibly positive and many deals are being agreed within a matter of weeks of confidential processes commencing. Year to date, our team have sold more than one nursery every week.
‘While there continues to be much debate around funding proposals in relation to the introduction of the 30 hours the ongoing uncertainty has not caused any slow down in market activity. Demand from buyers and investors remains very strong and the Outlook for Q2 2016 looks incredibly positive.’
