Investors are looking on the childcare sector as a rewarding market, reports Martin Pace
The key to any successful investment, like telling a good joke, is timing. And the timing looks right for the childcare sector. New nurseries are opening up all over the country, new chains are growing faster than ever and more company start-ups are planned. What effect is all this growth and competition having on the sector?
Land, which nursery operators seek for purpose-built units, is at more of a premium than ever, and 'silly' prices are being paid for those precious half-acres. Estate agents tend to generate an auction among the same handful of nursery companies and they outbid each other as pressure from their investor's mounts. Return on investment starts to drive business strategy and inevitably, many nursery companies are required to target the more affluent areas of the country to realise the returns required. Of course, this leaves the less affluent areas with insufficient childcare provision.
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