Day Nursery Market Insight: South of England

Image: Orry Verducci for Unsplash

What’s selling?

In the day nursery market in the South of England, we’ve seen really strong demand for both leasehold and freehold nurseries, typically those that are highly profitable with capacity for 55+ children. Over the years, we have seen more and more opportunities whereby the owners retain the freehold and create a lease for the buyer. The market for leaseholds has proven to be very strong in the South as they give the owner the added benefit of a yearly income from the rent post-sale which is a great option for many.

Mid- to low-level stock is generally taking longer to sell, as buyers typically seek high-quality, well-performing businesses with a stable team in place. However, there is quite an appetite for smaller settings and preschools which are priced around the £50,000 to £100,000 mark. At this level, a new owner can develop, refurbish, and build on the underlying principles of the business with the hope of driving forward occupancy and revenues. This price point also makes the opportunity accessible to first-time buyers and gives them their first step into the sector.

For the full article on the NMT website, click here.

To find out more about the day nursery market in the South, or for a confidential chat about your business, contact Sophie Willcox: sophie.willcox@christie.com / +44 7736 620 855