Published & Updated as on - 2010-03-04
The
recent global economic crisis and real estate slowdown has necessitated change
in business models, forcing investment firms to scout for new avenues. And the
recession-proof education sector that has seen tremendous growth, has emerged
as the new opportunity for the real estate sector.
Education infrastructure is an emerging asset
class favoured by many investors and developers. Inthis decade, Education has
seen tremendous growth and has been one of the few sectors not adversely
affected by the downturn. This immunity to economic cycles has also made some
view this sector as Recession-Proof.
In fact education sector is poised for robust
growth as 30% of India's population is in the 0-15 year age group, creating a
strong demand for educational facilities. Moreover India is being recognized as
a favoured education destination across the world, with a large infl ux of
international students.
Private
investment
The momentum in the industry has been attracting
investors, who expect lucrative returns on their investment and tend to prefer
upcoming promising businesses. A recent survey showed that 80% of the 90
private equity fi rms were interested in investing in the Indian education
sector.
This year, there has been substantial activity
in this sector. Many investment fi rms have raised funds for deployment in
education infrastructure. Milestone Group, predominantly a real estate fund,
now intends to venture into the education sector and is planning to set up a
US$ 128.7 million private equity fund, in partnership with Religare, with a
specialized focus on education and healthcare. Kaizer Education is another fund
planning to raise US$150- 200 million to invest in the Indian education sector.
Low industry penetration, huge untapped potential, government support and
attractive returns offer opportunities for companies to establish a presence in
this space.
Source: www.realtyplusmag.com
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