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 Prestwich is an imposing three storey detached property of brick construction and has traded as a Children’s Day Nursery for over 25 years. While the property does not benefit from on site parking there is a significant garden to the rear. Overall, the building presents as a prominent, characterful property well-suited for nursery use, offering generous internal space and strong street presence.
LocationThe property is situated in a well-connected suburban area of Greater Manchester, just north of the city centre. The location lies along Bury Old Road, a key route linking Manchester with Bury, and is close to local amenities including shops, schools, and healthcare facilities.
The property occupies a corner plot extending in excess of 0.2 acres, easily accessed by the M60, A56 and A665 offering direct routes into central Manchester. The nursery is well located in relation to local schools and is a short walk from Heaton Park.
The broader M25 postcode district has a population of 36,525 as of the 2021 Census.
Internal DetailsArranged over basement, ground and first floors, the nursery comprises several spacious and well resourced base rooms for children, in addition to ancillary areas comprising two offices, commercial kitchen and toilet facilities.
Externally the property features a long, spacious garden area with a range of age appropriate resources to facilitate outdoor play.
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 help for disadvantaged families.
Providers have benefitted from increased funding rates and capital grants in order to expand the number of available places within childcare settings to support the anticipated additional demand.
Support for Providers
On announcing the expansion of childcare funding to include children from 9 months old in 2023; the government allocated a £100m Childcare Expansion Capital Grant fund to help providers expand nursery provision. This funding allows providers to build or improve nursery facilities, increasing capacity and enhancing the quality of care. It’s particularly aimed at areas with limited childcare options, helping to meet local demand and strengthen community links.
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 improved 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 in its infancy, has in general led to an increase in enrolment levels across the sector due to places being more affordable for working parents of young children.
Early Years National Funding Formula (EYNFF)
Funding is allocated through a structured formula that ensures fairness and transparency across local authorities. This approach allows providers to plan more effectively, manage budgets confidently, and maintain consistent staffing levels. While the level of funding historically has not kept pace with inflation, in England providers welcomed the announcement of an average 4.5% increase in the hourly rate for the 2026/2027 academic year.
Investment SummaryWe are instructed to seek offers in the region of £2,180,000, subject to contract. An acquisition at this level would provide a net initial yield of 8.41% after allowing for purchasers costs of 6.32%.
The transaction would not attract VAT as the property is not elected and no VAT is payable on the annual rent.
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 £194,977 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:
Thrive has demonstrated sufficient EBITDAR and cashflow generation to:
• Sustain long dated lease obligations
• Engage in proactive lease regears
• Pursue ongoing estate optimisation
Website:
RegulatoryThe nursery is registered with Ofsted under Thrive Childcare and Education Limited, and provides care and education to a maximum of 92 children at any one time.
The nursery is currently rated "Good" across all inspection areas within the framework.
