Downing Corporate Finance is targeting intermediaries with an EIS focused on the childcare nursery s...
Downing Corporate Finance is targeting intermediaries with an EIS focused on the childcare nursery sector.
Downing Nurseries, which is looking to raise £10m, is the first such scheme from the group and follows on from the earlier launch of Childcare Corporation 5 from Teather & Greenwood.
Minimum investment is £2,500 and the closing date for subscriptions for the 2002/03 tax year is 30 May 2002. Initial commission of 2.5% is available.
Downing Nurseries will gear up to 50% and this should give the board a projected portfolio of 15 childrens' day nurseries.
The group anticipates being able to issue individual investor EIS qualifying certificates, which allow investors to claim tax relief, from the end of October 2002. This is subject to the scheme gaining EIS qualification status from the Inland Revenue.
Under EIS legislation, qualifying schemes must be a trading business. In order to meet this requirement the company will acquire an existing business at the outset.
David Knight, head of research at alternative investment specialists Allenbridge, said: 'The growth in the childcare nursery market looks assured for the time being, and even though it will undoubtedly flatten off as supply catches up with demand, nurseries established in the next few years have the opportunity to create local reputations and customer loyalty.'
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