Treetops nursery chain secures 8m loan to fuel expansion

The chain currently has 31 settings throughout England offering 2,100 childcare places, employing 700 staff.

Executive chairman Alan Proto is leading the expansion.

In 2007 the PINE Fund, a Jersey-based unit trust set up by Mr Proto, acquired Treetops Nurseries.

The sale and leaseback side of the business has now been split from the operating business in order for Treetops Nurseries to focus completely on its day nursery activities.

Treetops has been through refinancing and re-organisation, and has secured a new fixed five-year loan with Barclays for £8m to grow the business.

The company also continues to have the backing of private equity investment.

Managing director David Hancock said, ‘After an 18 month period of preparation, the refinancing and reorganisation of PINE and Treetops Nurseries completed at he beginning of March, providing Treetops with a secure platform for future growth.’

‘Separation of the PINE property business from the Treetops operating business means that, for the first time, we have only Treetops' interests to consider with absolutely no shared management allowing us to be 100% focused on developing the group.

‘I am delighted that our executive chairman, Alan Proto, can now devote more time to Treetops and lead on our plans to expand.

‘Our private equity backers have confirmed their support for the business, with additional funding and commitments to enable us to grow the business to 50 plus nurseries within two to three years. This means job security and excellent career opportunities in a business aiming to double its turnover in 3 years.

He added, ‘As well as wanting to grow, we have a clear strategy for making our nurseries the best in the country. This involves a continuing focus on our "10 out of 10" childcare standards, as well as training and development for our staff, continued investment in the fabric of our buildings; and a fresh take on marketing. The future looks very exciting indeed.’

The chain’s Bromborough nursery in Merseyside recently became the third nursery in the group to achieve an outstanding grade from Ofsted. This follows Chester's outstanding last year (pictured).

Clare Wilson, group finance director, said that the company planned to expand through acquisition and organic growth, by buying a mixture of standalone and groups of nurseries.

She said, ‘We will continue to grow the operating business with a good mix of freeholds and leaseholds throughout the country. It’s about buying the right opportunity, rather than the location.’