DescriptionChristie & Co are delighted to offer to market this valuable long let children's day nursery investment opportunity let until 2053 (no breaks) with RPI linked rent reviews (2%-4%collar and cap).
Holyrood Shaw is a large two storey detached property with wide frontage. There is a conservatory to the rear and the property has traded as a Children’s Day Nursery for over 25 years.
The property benefits from a large rear garden and ample gated parking to the front including separate entrance and exit, ideal for drop-off and collection.
LocationThe property occupies a prominent position on a busy arterial route within a well-established residential area, approximately 9 miles northeast of Manchester city centre.
The location benefits from excellent connectivity via the A663 and M62 motorway, as well as Shaw and Crompton Metrolink station, providing direct access to Manchester.
Local amenities include schools, shops, healthcare facilities, and green spaces such as Dunwood Park, making the area attractive to families. The wider OL2 postcode district supports a population of around 25,000–30,000, offering a strong catchment for childcare provision.
Day Nursery Market OverviewThe UK government is expanding childcare support to improve affordability and access. In England, working parents can now claim up to 30 hours of free childcare per week for children from 9 months old, with universal entitlements for all 3‑ and 4‑year‑olds.
Additional schemes include Tax‑Free Childcare, Universal Credit support, and targeted assistance for disadvantaged families. Providers have benefitted from increased funding rates and capital grants aimed at expanding the number of places available within childcare settings to support anticipated demand.
Support for Providers
Following the announcement in 2023 that free childcare would be extended to children from 9 months old, the government allocated a £100m Childcare Expansion Capital Grant to help providers grow nursery provision. This funding supports the construction or improvement of nursery facilities, boosting capacity and improving quality. It is particularly intended for areas with limited childcare options, helping meet local demand and strengthen community provision.
Increased Funding Rates
For the academic year 2025/2026, providers in England now receive an average of £11.54 per hour for children under 2, £8.53 per hour for 2‑year‑olds, and £6.12 per hour for 3‑ and 4‑year‑olds. These enhanced rates help cover rising operational costs such as staffing, resources, and utilities, supporting the sustainability and quality of nursery settings.
This support has generally been welcomed by providers and, while still early in its implementation, has contributed to rising enrolment levels across the sector—driven by improved affordability for working parents.
Early Years National Funding Formula (EYNFF)
Funding is allocated through a structured formula designed to ensure fairness and transparency across local authorities. This approach enables providers to plan more effectively, manage budgets confidently, and maintain consistent staffing levels.
Although funding levels historically have not kept pace with inflation, providers in England welcomed the announcement of an average 4.5% increase in hourly rates for the 2026/2027 academic year.
Investment SummaryWe are instructed to seek offers in the region of £920,000, subject to contract. An acquisition at this level would provide a net initial yield of 7.99% after allowing for purchasers costs of 5.7%.
The transaction would not attract VAT as the property is not elected and no VAT is payable on the annual rent.
TenureFreehold
TenancyThe property is let on the remainder of a 30 year lease agreed in March 2023 on full repairing and insuring terms, and therefore has c.27 years unexpired term with no breaks. Passing rent is currently £77,636 following the most recent rent review in March 2025.
Rent reviews are annual on an index linked basis (2%-4% collar and cap).
Covenant InformationThe property is let to Thrive Childcare & Education Limited, a premium national operator of 46 children’s day nurseries across England and Scotland, providing a well‑established occupational covenant.
The lease is guaranteed by Thrive Childcare & Education Group Limited, an entity with net assets in excess of £4.8m and a Dun & Bradstreet rating of 2A2, enhancing covenant strength and income security.
Thrive Childcare & Education is ultimately owned by Apiary Capital LLP, website:
RegulatoryThe nursery is registered with Ofsted under Thrive Childcare and Education Limited, and provides care and education to a maximum of 83 children at any one time.
The nursery is currently rated "Good" across all inspection areas within the framework.
