PRESS RELEASE FOR IMMEDIATE PUBLICATION 3 July 2012 CURRO, PIC AND OLD MUTUAL JOIN FORCES TO EXPAND QUALITY LOW-FEE SCHOOLING

Transcription

1 PRESS RELEASE FOR IMMEDIATE PUBLICATION 3 July 2012 CURRO, PIC AND OLD MUTUAL JOIN FORCES TO EXPAND QUALITY LOW-FEE SCHOOLING Curro Holdings, the JSE-listed private schooling company, the Public Investment Corporation (PIC) and Old Mutual Investment Group SA (OMIGSA) have joined forces to provide a major boost to affordable independent schooling in South Africa. The partnership aims to deliver quality low-fee education to an initial learners across 11 schools nationwide. With education being critical for South Africa s social and economic development, the PIC originally approached OMIGSA to find innovative ways to address the shortage of affordable schools in South Africa. This led to the establishment of OMIGSA s Schools and Education Investment Fund of South Africa (the Schools Fund), which has already allocated more than R500 million for education projects. Today Curro and OMIGSA signed the legal agreements that will, over the next seven years, release finance for the development and operation of 11 low-fee independent schools managed by Curro. These schools, called Meridian Independent Schools, will meet the criteria specified by the Schools Fund by achieving both quality education outcomes and a commercially acceptable return for investors. The Meridian Independent Schools are broadly aimed at working-class people for whom private education was not always available in the past. These schools, of which three are already in operation under the Meridian banner, are more accessible and affordable than other Curro schools. School fees range from R900 to R1 300 per month. Curro Holdings CEO, Dr Chris van der Merwe, said the aim of the OMIGSA partnership is to add eight more Meridian Independent Schools to the existing three over the next few years. The schools will have a footprint in seven provinces. Those schools currently operating in Limpopo, North West and Gauteng include Meridian College Pretoria in Koeodeospoort near Lindopark township, Meridian College Rustenberg in Thlabane and Meridian College Polokwane in Ladine. Meridian College Pinehurst in the Western Cape will open its doors in January 2013, while the rest will follow subsequently, including schools in the Eastern Cape and KwaZulu Natal. The emphasis will be on providing a focused and well-rounded academic education to prepare leaners to succeed after school, while teachers and learners will have strong support from Curro s dedicated curriculum unit, the Curro Centre for Educational Excellence (CCEE). We strongly believe that this market segment is set for strong growth in the future and we are extremely fortunate to have OMIGSA on board as a partner, said van der Merwe. The partnership consists of the PIC and Old Mutual Life Assurance Company South Africa as Schools Fund investors, OMIGSA as the fund manager, and Curro as the operational and infrastructure development expert.

2 Commented Christine Glover, head of Development Impact Funds in OMIGSA Alternative Investments: The Fund provides investment capital for infrastructure expansion, and can also be used to train teachers, for low-fee independent schools for households that earn less than R a year. We have partnered with Curro because of their track record in delivering highquality education. I would like to congratulate Curro for stepping up to the challenge of providing education across all income groups in South Africa, in particular affordable fees for working-class families. We are very excited about a fruitful partnership in the years ahead. In addition to our partnership with Curro, we have other exciting initiatives in the pipeline for the Fund to target lower-income rural schools in those communities that have limited access to quality education and infrastructure, added Glover. As one of the major drivers behind these initiatives, OMIGSA would like to commend the PIC on the proactive role it plays in providing funding to make a tangible difference to the lives of so many South Africans. We need more like-minded investors to do the same. PIC Chief Executive Officer, Elias Masilela, commented: We are very excited about our involvement with the Curro independent schools project. This investment is in line with our investment approach. As a long-term investor, we believe that over time this will yield the desired results of providing quality education to South Africans. Curro believes that this venture will ultimately have a major social and developmental impact in communities where it matters, noted van der Merwe. We see it as a model for the development of community schooling in South Africa. The funding of the South African Independent schools market is not yet well established and OMIGSA s involvement with Curro as an anchor partner will go a long way to achieve this - not only to provide credibility, but also sustainability, he concluded. Media enquiries: Dr Chris van der Merwe Gerhard Cloete (for Curro) Tel: (021) /5 MediaVision Cell: Cell: drchris@curro.co.za gerhard@mediavision.co.za Christine Glover, OMIGSA Alternative Investments Lynn Bolin, OMIGSA head of media & comms Tel: (021) Tel: (021) Cell: Cell: (083) cglover@omigsa.com lbolin@omigsa.com More about OMIGSA s Schools Fund Urgent interventions are required to improve the quality of education in South Africa. Future generations need to be skilled in order to fuel the economic and social growth of the country. There is a pressing need to increase the amount of schooling that children receive as well as improve the quality of education. This is a prerequisite for improving education outcomes and reducing inequality in educational achievement. In an effort to assist in achieving this, OMIGSA, as fund manager, and its investors have established the R1.2 billion Schools and Education Investment Impact Fund of South Africa (Schools Fund). The primary focus of the Schools Fund is on independent low-fee paying schools. The Fund s objective is to finance infrastructure and educationrelated requirements so as to achieve quality education outcomes and a commercially acceptable return. The Fund also invests in education areas such as early childhood development, skills/vocational training and education

3 materials/services. The Development Impact Funds team, part of Old Mutual Investment Group (South Africa) (OMIGSA), is the Fund Manager. An important focus for the Fund is supporting the expansion of independent low-fee paying (pre-primary, primary and high) schools. Over the past few years there has been a significant increase in the number of independent schools; both low-fee paying and middle-income independent/private schools. The South African Institute of Race Relations South African Survey 2009/2010 says that the number of children attending private or independent registered schools increased by 50% between 2000 and 2009 (based on Department of Education data). The Fund s target market is households that earn less than R a year. The Fund partners with school/education operators who have a good track record in the provision of quality education to our target market. The investment takes the form of debt and equity finance. The Fund prefers large-scale investment as it aims to impact as many learners as possible. Investments can focus solely on infrastructure (e.g. buying and renovating preprimary, primary and/or high school buildings) or can be a mix of projects that includes education-related facilities in the vocational skills space. The investment takes place over a long period (10 to 15 years). The Fund can invest anywhere in South Africa. About OMIGSA Alternative Investments A dynamic and innovative business within Old Mutual Investment Group South Africa (OMIGSA), the Alternative Investments boutique is the largest alternative investment manager in South Africa. With assets under management in excess of R33 billion, this 50-strong team manages investments in private equity, infrastructure, mezzanine debt and a range of development impact funds. As winners of the Principal Officers Association s 2012 Imbasa Yegolide Socially Responsible Investor of the Year Award, the Alternative Investments team is widely acknowledged for its contribution to the improvement of South Africa through the provision of affordable housing and access to quality education. In addition, they are active investors in road and rail infrastructure and alternative energy. Schools Fund details: The operational features common to all schools are as follows: Fee Range R800 R1300/month excluding government subsidy Grades Grade 0 Grade 12 (primary and high) Type of school Co-educational, i.e. boys and girls Language of Learning and English Teaching Schools size for combined Combined (primary and high) Class size Curriculum South African National Curriculum with the National Senior Certificate (NSC) being the ultimate Grade 12 qualification Subject choices Grade 0-9 The full range of required subjects will be offered Subject choices Grade Learners will have four compulsory subjects, namely: English Home language First Additional Language (practical and appropriate to the region) Life Orientation Mathematics or Mathematical Literacy They will then have to choose three additional subjects from the list below. Physical Sciences Life Sciences Geography Accounting Business economics Design

4 Computer Applications Technology Extra-mural activities General ethos This subject choice will provide the learners with the necessary options that will not only cater for their individual talents, but will also give them the best opportunity to compete in the world of work. Aftercare and homework supervision Sport to include soccer, netball, basketball, rugby, five-a-side cricket and soccer Cultural chess, drama, debating, general knowledge/current affairs, outreach, outdoor clubs Focus on academic outcomes within caring environment Teacher focused to enable classroom teaching Sound discipline in caring and structured environment

5