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Case study: helping a children's nursery buy their premises

15th Jan 2024
Brought to you by
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Allica Bank is Britain’s award-winning business bank focused exclusively on supporting established...
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Nurseries are special places, where our children get their first taste of an educational environment, make friends, and learn to share and socialise with others. The foundations of a lot of our young lives are laid in nurseries, so a good one is worth its weight in gold. 

Case study: Kinder City
Allica Bank

Based in the heart of Luton (just under a mile from the centre), Kinder City is one such example. Owned and operated by Ovais Ahmed, a local and experienced childcare professional, the nursery is a pillar of the community for young families in the area. 

In early 2023, Ovais was presented with an opportunity – he just needed some help to make it a reality. This is the story of how Ovais brought his premises with the support of his bank. 

A closer look at Kinder City 

Kinder City is an independent nursery and pre-school, family-owned and operated since its launch in 2015. The nursery is located in a beautiful, repurposed church building, full of character and charm.  

With 130 children under its care, many local families trust Ovais and his team to provide a safe and caring environment for their children. That trust is clearly well-placed, given its ‘Good’ rating from Ofsted. 

Kinder City employs 21 staff, supported by an experienced management team, and operates sustainably and prudently. 

Securing Kinder City’s future 

At the start of 2023, Ovais had to make a big decision for his business. His landlord had decided to sell the property and, rather than waiting to see if his business featured in the plans of a new landlord, he started to plot what it would look like to own his premises. 

“It’s always difficult having the uncertainty of being a tenant. Owning the building would allow us to be innovative and invest in enhancing every aspect and environment of the nursery,” he said. 

To get a sense of what was possible and viable for the business, Ovais decided he should talk to somebody with a bit more subject expertise – local Allica Bank relationship manager, Wahid Nawaz

How we solved it together 

“I’ve known Wahid for a long time,” he said, “having met him at many business events. When I picked up the phone to him, I assumed he’d sign-post me to a bank that could help. I never thought that Allica Bank themselves could offer me a solution.” 

Every Allica Bank customer has a relationship manager who supports their business and understands their situation. In this case, Wahid was able to explain and guide Ovais through the commercial mortgage process for the £450,000 property. Four days after submitting his application, Ovais had an offer from Allica Bank and the future of his business took a new shape. 

“When I was approached by Ovais to help Kinder City buy their existing premises,” Wahid said, “I could see what an important opportunity it was for them.” 

The Allica Bank underwriting team were impressed by Kinder City’s management team, financial performance, and bounce-back after the pandemic. Credit Underwriter Stuart Furlong said: “the excellent Ofsted reports and track record gave me real comfort in its strength and potential. We were more than happy to make him an offer. This business is a great part of the community and we’re pleased to help secure its longevity.” 

What’s next for Kinder City 

The outcome has been positive all-round. Ovais has secured the future of his business and is already looking ahead to how he can take it to new heights, Allica Bank has another happy customer, and one of Luton’s prized nurseries can continue to thrive 

“The future for Kinder City looks amazing,” Ovais said. “As a founder and director, I feel I have a renewed energy for my business. With this newfound autonomy, I can really be innovative and creative in enhancing and tailoring every aspect of this building.” 

“By owning our premises, there’s no longer an external party involved. It means I can really focus on how I can enrich this environment for the kids, parents and staff. For one, we’re looking at spending over £20,000 on our outdoor space.” 

Wahid is “so pleased we’ve been able to support Ovais and Kinder City as they take that next step in their journey. I’m looking forward to seeing them go from strength to strength.” 

Real relationship banking 

Ovais remarked that “having a dedicated relationship manager made it so much easier. I could pick the phone up at any time and ask Wahid a question.” 

“Normally, purchasing a building, you’re going to go through a lot of anxiety about what’s going on and what the valuation is going to be like. Wahid always assured me that no matter what problem came there would be a solution he could find me.” 

Do you have a client in a position like Ovais and want to discuss the next steps for their business? Speak to our team today. 

Speak to us

Alternatively, watch the full video of how we helped Kinder City here