Q&A with Daniel Goodman, The Harkalm Group

Q. What’s driving your interest in the day nursery sector?

Daniel: Harkalm’s interest in the day nursery sector is driven by a commitment to creating sustainable, long-term investments that deliver strong social impact. We recognise the growing demand for high-quality early years education and the critical role nurseries play in supporting local communities.

By investing in this sector, we not only aim to generate stable, long-term returns but also help provide much-needed educational places that contribute to children’s development and community wellbeing. This alignment of financial sustainability with positive social outcomes is at the core of our strategy in the day nursery market.

Q. Harkalm has a strong track record in sale and leaseback transactions. How do you see this model evolving in the current economic climate?

Daniel: Over the past 12 months, we have completed a number of sale and leaseback transactions, and we expect this trend to continue.

In today’s economic climate, many operators are keen to unlock capital tied up in property to fund their growth ambitions while retaining operational control of their existing settings. Sale and leaseback arrangements offer an effective solution by providing immediate liquidity without disrupting the operator’s core business. This model is particularly attractive now, given the current high cost of borrowing and elevated mortgage rates, which can make traditional financing more challenging.

We anticipate that sale and leaseback will remain a key strategic tool for operators looking to balance capital efficiency with operational continuity. ESG is becoming a bigger focus across real estate.

How is Harkalm approaching sustainability in its investments?

Daniel: At Harkalm, we recognise the importance of embedding sustainability and ESG principles into every stage of our property investment strategy. Our approach is pragmatic, long-term, and focused on delivering value for us and the communities we operate in.

We actively assess environmental performance across our portfolio and explore opportunities to enhance energy efficiency, reduce carbon emissions, and futureproof assets. This includes considering sustainable building materials, renewable energy solutions, and improved insulation and systems as part of refurbishment and development plans.

Social responsibility is also central to our model. By investing in sectors such as education and healthcare, and working collaboratively with our occupiers, we aim to deliver spaces that serve local communities and support essential services. We take a partnership-led approach that prioritises the long-term success of operators and the well-being of end users. Governance is upheld through robust internal processes, ethical decision-making, and a commitment to transparency. We continuously monitor and refine our ESG practices to ensure we are meeting evolving expectations and contributing positively to the built environment.

Q: How do you balance risk and opportunity when entering new markets or working with new operators?

Daniel: We pride ourselves on being straightforward and enjoyable to transact with. As an established property company with over 20 years of experience, we are confident in our ability to identify and respond to new opportunities, including entering emerging sectors and working with new operators. That said, we approach every new venture with a strong emphasis on due diligence.

We conduct thorough internal research to fully understand operating models, unit economics, and long-term profitability. This ensures that any investment is not only commercially viable for Harkalm but also supports the sustainability and success of the operator. We don’t just look at the asset - we assess the strength of the business behind it.

Crucially, we prioritise building genuine partnerships with our occupiers rather than maintaining a purely transactional landlord–tenant relationship. This collaborative approach enables us to align interests, share risk where appropriate, and support mutual growth. It’s this balance of disciplined analysis and relationship-led investing that underpins our confidence in new markets and operators

Q: Where do you see the opportunities for growth, both now and in the future?

Daniel: We remain highly acquisitive, with a strong focus on growing our core sectors: education, food stores, roadside, and retail. Each of these sectors continues to evolve, and it’s imperative that we stay ahead of emerging trends to ensure our investments remain both resilient and forward-looking.

We see continued opportunities for growth in sectors that provide essential services and demonstrate long-term stability. Education - particularly early years and specialist provision - continues to see strong demand as communities expand and local authorities prioritise access to high-quality providers. Similarly, food stores and roadside retail remain robust investment categories, driven by their convenience and consistent footfall, especially in suburban and edge-of-town locations.

Looking ahead, we believe future growth will come from adapting to shifting consumer behaviours and operator requirements. This includes increased emphasis on ESG-compliant assets, flexible property formats, and technology-enabled environments. We’re also monitoring opportunities in the health and wellness space, as well as the potential to reconfigure underutilised retail assets for mixed or alternative uses. Ultimately, our focus is on long-term, sustainable investment - commercially, socially, and environmentally - across all sectors in which we operate.

Daniel Goodman is Director & Head of Developments at The Harkalm Group, a commercial property investor specialising in retail and education business for over 25 years. From joining in 2017, Daniel oversees the properties through acquisition, from appraising suitable opportunities to practical completion.

To read our full ‘Childcare & Education Market Review 2025’ report, click here.