UK-based Creative Education Corp (CEC) has signed a £43m deal with AIM-listed Ely Property Group to lease 25 new Primary Steps creches in Ireland within the next three years.
Ely, which specialises in tax incentive property for buy to let investors, plans to spend around €2.5m (£1.75m) per creche with an average size of 3,000 sq ft.
Ely chief executive Philip Marley says that the joint venture deal will be financed by private investors willing to acquire the creches and offsetting the construction costs against income tax.
Demand for child care accommodation is a major concern in Ireland due to the high incidence of working mums, relatively high birth rate and low unemployment.
Primary Steps is Britain’s tenth-largest nursery company, with 35 creches.
Ely is also planning to exploit the new UK pension property incentives.
References: EGi News 21/09/05
