Are UK child care homes a good investment?

The UK Government’s restrictions on public spending have had an impact on the already overstretched resources of many local authorities, who have obligations to provide child care facilities and services.

Related topics:  Landlords
Warren Lewis
1st October 2013
Landlords

The effects of Government fiscal policy are now being felt by those authorities who have an under-supply of good homes in which to place children in need of care arrangements, in accordance with their statutory obligations.
 
Property Investors are now being invited to invest in child care projects.

Luke Smith, Managing Director of Crystal Investment and Real Estate comments:

“The Government cuts are placing significant pressure to outsource care provision to private providers and this gives investors an excellent opportunity to invest in a safe, asset-backed child care project.
 
We are offering investors, in conjunction with our development partner, Gravity Child Care Limited (GCC), the chance to participate in an exciting new residential care service, designed to support children and young people from age 8 to adulthood.  With a strong emphasis on education and further development of young people, GCC strongly believe in continuing support, through to semi-independence and until the young person is ready for full independence.
 
Investors who would like to participate in GCC’s plans for the acquisition and management of care homes for children are able to advance money to GCC by way of loan which is secured on owned properties. This is not an offer of equity. Loans will not be convertible - the object is to receive an above market rate of interest on a term loan, which is then repaid.

Moneys advanced will be used directly to purchase and refurbish suitable properties and for the subsequent costs of running and maintaining them. All of these properties will be registered with the Office for Standards in Education (OFSTED) for use as child care homes. The investment opportunity requires a minimum investment of £20,000 with a 12 month term and will deliver ROI of 18%.”

Crystal Investment and Real Estate is a leading real estate investment firm specialising in finding its clients the safest, most profitable investment opportunities through extensive market research, complete due diligence and a very careful selection process. Crystal Investment and Real Estate has many years of experience, covering over 20 emerging markets.  
 

More like this
Latest from Financial Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.