Private investment into the UK’s nursery sector jumped by 54% year-on-year to reach £57m in 2021, as investors looked for resilient assets in a volatile market.
The annual investment figure was seven times higher than in 2019, according to a new report from Knight Frank.
Notable recent deals include LXi REIT buying a portfolio of 23 Kidspace Nurseries for £34m – 2021’s largest deal – and AEW purchasing a portfolio of Three Little Bird nurseries valued at £13.75m across West Finchley, Winchmore Hill, Muswell Hill and Wandsworth.
Julian Evans, head of healthcare at Knight Frank, said: “With economic uncertainty forecast to continue with the cost-of-living crisis among other disruptive factors, the resilient and sustainable growth of these childcare sectors is encouraging. The continued population growth and the increasing identifications of individuals requiring additional educational support indicate the sustained demand for these service providers.”
Knight Frank also noted a growing demand for schools focused on special educational needs, a market it said is now valued at £4bn. The firm pointed to UAE sovereign investor Mubadala Capital’s 2021 investment in Witherslack, which owns 18 schools and 18 care homes.
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