We are seeking investor partners
Are you a real-estate investor, equity fund manager or private investor? The private education sector is rapidly growing and in many cases the demand outweighs the supply. IEC has the know-how, experience and resources to open and operate new schools. We have a number of opportunities throughout the region and we’d like to talk to you about the benefits of investing in international schools.
Demand for schools
- Growth between 2009-2015 in private school enrolments at both primary and secondary level was double that of public schools with CAGR 4.4%
- Market share of private schools in the GCC in 2016 was 15.1%, this is expected to increase to 19.1% by the end of 2020
- Market size of private schools is expected to double from $8.1bn in 2016 to $16.2bn by 2030
Return on investment & benefits
Whether it be a financial benefit, a long term tenant or contribution to the community. There are many benefits to owning and operating private international schools. Typically when we look to deploy a new school with our partners, we establish a PropCo and an OpCo. The idea being that the OpCo (school operating company) leases the school facilities from the PropCo (property company). This makes it easy for investors to opt-in to their preferred investment model, or both!
Property Company / Landlord (PropCo)
- Annual income of 7 to 9 percent p/a
- Long term capital gain of 3 to 4 percent p/a
- Long term lease with OpCo 25+ years
- Predictability of income
- Optimal operating expenses
- Minimal counterparty risk
School Operations Company (OpCo)
- Typical financial breakeven within 4 to 5 Years
- Typical payback period within 4 to 6 Years
- Projected internal rate of return of 20 to 30 percent (10Yrs)
- Provision of quality schooling for expatriates and nationals
- New jobs for the local community
- Injection of spending in other community sectors
- Improvement of skills and qualifications of the local population