OakNorth Bank has provided growth capital to Strawberry Fields Nursery and Preschool, to pursue a buy and build strategy to bring more nurseries with swimming academies to market

Strawberry Fields’ swimming academy has proven to be a hit with the Chorley locals, and a strong way to differentiate it from other nurseries in the area. This is evidenced by the fact that despite having only been open for a few months, swimming classes have already reached 80% capacity. With several hundred people working at a business hub directly opposite the nursery, c.10,000 homes within a two-mile radius of it, and c.150 new homes being built right behind it, it is expected to be at full capacity within months.

The nursery also has a purpose-built café and is part of RedRose Leisure Group, which counts Planet Kaos nursery in Blackpool and PK Kids nursery in Eccleston in its portfolio – both of which have Ofsted ratings of “Good”. RedRose Leisure Group is owned by Andrew Rose and Simon Redwood – both of whom have owned and operated children’s nurseries alongside their full-time jobs for the last eight years. Andrew is a senior quantity surveyor for family-run SME housebuilder, Baxter Homes, while Simon works as a fireman at South Shore station in Blackpool. They started in business together in 2008 with a play centre and with the profits from that, began building their nursery portfolio.

Commenting on the transaction, Simon Redwood, director of RedRose Leisure Group, said: “Our aim with Strawberry Fields is to create a leading independent nursery business where kids can learn in the classroom and the pool. Learning to swim doesn’t only provide numerous physical health benefits, but also has significant mental health benefits as well, as the earlier a child starts swim lessons, the more self-confident they become. I thought applying for a bank loan would be harder than fighting fires, but with OakNorth Bank, it proved to be a simple and enjoyable process. The team understand the early years sector and the potential of our offering, so were willing to help at a time when many other lenders were turning away from the sector due to ongoing Covid-19 challenges.”

Tom Jessop, associate director of Debt Finance at OakNorth Bank, commented: “Simon and Andrew have successfully owned and operated two nursery sites since 2013, whilst both working full time jobs.  This is testament to their incredible work ethic and the strong team they’ve built around them. They completed the construction of their third nursery, Strawberry Fields, during one of the most challenging periods in history for the sector – and have built it with a swimming academy, giving it a strong market differentiator and additional revenue stream outside of nursery hours. With this capital from OakNorth Bank, they have the financial firepower to expand this unique offering and provide even more kids with the opportunity to learn how to swim.”

OakNorth Bank was advised on the transaction by solicitors, Milana Katz and Stavros Theophilou, at Lawrence Stephens.