First Steps nursery will open in September in the premises of a former independent school in Northfield, Birmingham, that went into administration last year.
The premises are currently being refurbished. A new outdoor area will include a 'beach' and a new garden.
Andy Gould, who runs First Steps with his wide Debbi, said, 'Our first two nurseries have proved to be extremely popular, and as the waiting lists for both grew, we decided to invest in a third to respond to demand.'
The couple opened their first nursery in Birmingham, called Stone House Farm, in 1992 and their second, Ashton Court, in Wolverhampton in 2003.
The Co-operative Bank said that despite the uncertain economic climate, it was keen to lend to businesses.
The acquisition and refurbishment are being funded by the bank's Birmingham corporate banking centre.
John Crittenden, corporate relationship manager for the bank, said, 'We have to be very selective. In this case, they have been customers since 2002 and this is their third nursery. They are very experienced, with good Ofsted reports, and have been customers for a long time. The new nursery is only two-and-a-half miles away from where they are and there is a natural overspill.'
Within a two-mile radius there are also large employers including Cadbury's, a new hospital and Birmingham University.
Mr Crittenden added, 'The right nursery in the right place is a good investment. It's not a market that's going to go away, but it's a pretty competitive field. It's a market we're reasonably positive about.'
He said that he expected the trend for mothers with very young children returning to work to continue to rise. The rise in unemployment 'could force the issue', as well as the fact that families need two incomes, he said.
