News

Nursery market 'buoyant'

The private daycare market is 'buoyant' as occupancy levels hit around 90 per cent, corporate agent Christie + Co has said.

Christie + Co has brokered significant deals in 2008, including BertramNursery Group's acquisition of the Holyrood Nursery Group (News, 23April). It also assisted in the buyout of Kidsunlimited (News, 16April).

The company's research over the first half of 2008 found nurseriesacross England and Scotland experiencing a significant increase indemand for places.

Director of corporate childcare Courteney Donaldson told Nursery World,'There's always an increase in occupancy levels for the first months ofthe year, but this year has seen a very significant increase. Themajority of nurseries we have spoken with are trading around the 90 percent mark, if not more. Very high occupancy and good levels ofprofitability means operators and investors are looking to acquire thesebusinesses.

'We've seen more regional and corporate group sales in the last year andJust Learning has announced a 10m acquisition fund. There is ahunger in the market. People want to buy quality nursery assets, theywant to do deals.

'It's been a busy first six months and we're expecting similar sales inthe second part of the year.'

Ms Donaldson said the childcare sector is insulated from the currentissues in the property and financial markets, being buoyed by demand asmothers seek to return to work.

'Due to increased supply, there's been an occupancy void in the pastcouple of years and those voids are now being filled,' she said. 'And atthe same time, fees are going up.'

Occupancy in the maintained and voluntary sector is also increasing, butat a slower pace due to demographics and more challenging sales withcomplex prior funding sources, Ms Donaldson added.

The company's latest newsletter is available at www.christie.com.