The acquisition of the Little VIPs business, backed by Royal Bank of Scotland, marks the first property purchase for the firm since it was launched in 2001.
Kidzcare owner Anne Marie Dunn said: “It will offer us greater flexibility and opportunities for growth. We have already started to upgrade the premises in order to improve the facilities to the standards we would expect for our children and families.”
The company currently operates 14 out-of-school and nursery centres across the capital and Scottish Borders in partnership with local authorities, looking after up to 500 children each day.
Karis Marinello, senior relationship manager for RBS corporate and commercial in Edinburgh, said: “Childcare opportunities are crucial in cities such as Edinburgh where nursery places are limited and the volume of families where both parents work is high.
“The property purchase and redevelopment marks a major milestone in the development of Kidzcare and one which is likely to lead to more places and potentially more job opportunities in the Portobello region too.”