London, 08 March 2022
Macquarie Asset Management, on behalf of an institutional client, has partnered with ICP Education to establish a £20 million portfolio of commercial ground leases in the United Kingdom.
ICP Education is a leading operator of high-quality nursery schools, providing day care for almost 7,000 children across 51 locations in England and Wales. To support its continued growth, Macquarie Asset Management has helped ICP Education put in place new commercial ground leases for a portfolio of assets across England.
Hugo James, Managing Director at Macquarie Asset Management, said: “Nurseries are an essential service to communities, providing quality care to children whilst allowing parents to remain in work. In addition, the sector has proved resilient to economic headwinds, offering a stable investment opportunity for us to develop on behalf of our institutional clients. We are delighted to have been able to create this bespoke ground lease structure for ICP Education, offering a long-term financing solution that enables their growth plans.”
Stephen Booty, Executive Chair at ICP Education said: “As demand for services from our sector continues to grow, this agreement with Macquarie Asset Management comes at an important time. This agreement raises capital from our existing facilities so we can continue to grow and develop our award-winning services. At the same time, we have the confidence that we can continue to use the facilities to provide high quality care to children for many years to come.”
Macquarie Asset Management expanded its private credit offering in December 2020 with the launch of its secure income strategy, initially targeting investment opportunities in commercial ground leases. The asset class enables institutional investors such as pension funds and insurance companies to gain exposure to secure, long-term income streams that match their long-dated liabilities.
ICP Education own and run 51 nurseries in the UK, and since purchasing their first Nursery in 2016, has grown to become a top 10 provider of childcare places and employ over 1,200 staff.
Originally focused on London and the South East, ICP Education has an increasingly national reach as they continue to acquire settings across the UK.
Through a focus on quality childcare, and a philosophy based on being the best local Nursery within its own community, ICP Education continues to build a group of premium nurseries - each retaining its own character and uniqueness.
ICP Education were named ‘Nursery Operator of the Year 2021’ at the Education Investor Awards in December 2021. They were also recent winners at the NMT Awards in November 2021, when Lydia Evans, (of Old School House Nursery in Stechworth, near Newmarket), was recognised as Nursery Practitioner of the Year 2021.