Teather and Greenwood Investment Management has introduced the fifth issue of the Childcare corporation enterprise investment scheme (EIS)
Childcare corporation 5 aims to raise up to £10m to build and manage 10 purpose-built children's nurseries in the Midlands and South East of England. The nurseries will provide day care for children aged between 3 months and five years for five days a week between the hours of 8am and 6pm.
The money raised from the four previous issues of Childcare Corporation has been fully invested or already earmarked for new buildings. It is intended that Childcare Corporation 5 will raise enough funds to finance the building and operation of 10 more nurseries.
The company believes childcare is a growing market, with demand for nursery places from working parents exceeding supply. The advantage this area has for investors is that they can profit from the nurseries as businesses and also from the value of the property if prices increase. In addition, investors will receive the tax breaks associated with an EIS.
However, the downside to this EIS is that, as an unquoted company, Childcare Corporation 5 could represent high risks. Its success will depend on a number of factors that cannot be guaranteed, such as finding sufficient sites at the right price, obtaining planning permission and a continuing demand for childcare.