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Three Little Birds

Service: Agency, Asset Valuation & Advisory | Sector: Nurseries

The Challenge

  • The Gerald Eve Nursery team advised on the sale and leaseback of a portfolio of four London nurseries.


The Solution

  • The sites, acquired by Three Little Birds in March 2021, are at varying stages of maturity, with two having opened in August and September 2020. The portfolio’s huge growth potential was a deciding factor for the nursery operator, who intend to grow to 30 sites whilst retaining their focus on providing premium quality childcare.
  • We undertook a discreet, targeted marketing campaign and identified a specialist investor, AEW UK Real Return Fund, who acquired the freeholds with new 25-year index-linked leases. The deal enables Three Little Birds to focus on their core business, operating nurseries and educating children, whilst the capital generated will facilitate their ambitious expansion plans.


The Result

  • The price paid was £13.7 million and represents a Net Initial Yield of 5.25%, reflective of the strong investor appetite for well-located, high quality nurseries and the emergence of social impact funds focused on socially responsible real estate classes with sustainable long-term fundamentals.

Morgan’s support enabled us to focus on the day-to-day operations of the nurseries whilst delivering a fantastic outcome for the business. The sale of the property portfolio fits perfectly into our leasehold-orientated strategy, enabling us to focus on providing outstanding childcare, and we are particularly grateful that Morgan found a property partner who shares our ethos and commitment to quality.

Edward Morris, Co-CEO, Three Little Birds

Related Service & Sector

Key contact

Morgan Allen