Nursery Management: State of the sector - Hot property

Demand for new acquisitions in the nursery sector is growing rapidly. Courteney Donaldson, Director, Corporate Childcare at Christie and Co, says while demand has now spread from large, cash-rich groups to a 'wide range' of buyers, a key trend is regional and mid-sized nurseries looking to expand, or getting snapped up by large nursery chains.

'There was certainly more activity this summer in terms of regional deals. There has been more demand from buyers from small regional teams. We are seeing the return of the first-time buyer, with nursery groups of two to four nurseries looking to buy more.'

Paul Miller, of Redwoods Dowling Kerr, where nursery sales have averaged more than one per week over the past four years, agrees. 'There are a number of good quality and astute regional and mid-size groups who also have well defined strategies and are actively looking to grow. These groups offer high quality childcare and are pursing strategies which are appropriate to their own circumstances... We predicted that these groups would continue to grow... by purchasing small groups and single settings and that this would enhance their overall value and this has happened. We expect this to gather pace.'