Buy-to-let property firm to develop 25 creches

ELY, the listed property development company, plans to take advantage of a tax break to build 25 creches in Ireland.

The company says it has struck a deal with Creative Education Corp, a British firm, to build the creches across the country over the next two to three years.

Ely said it was taking advantage of the tax breaks for investors in childcare to move on the project. Under Section 63 of the Finance Act 2003 taxpayers can offset investment in creches against their income tax.

The tax break was introduced to stimulate development in the under-serviced nursery market.

Ely chief executive Philip Marley said in a statement that Creative Education has created a unique service through its Primary Steps brand.

“We believe their individualised, small unit approach to creches is the right one for the Irish market. We anticipate developing creches in residential, workplace and school environments.”

Research to identify the first sites in Ireland for development into 3,000 square ft units has begun.

Creative Education said it is the tenth largest nursery company in Britain.

Shares in Ely, which are traded on London’s Alternative Investment Market, were unchanged yesterday.

The company listed earlier in the year, two years after it was set up by Mr Marley. It is valued at just under €20 million. It focuses on the buy-to-let end of the market.