A Strategic Investment: Rava Partners Acquires Hartland International School

Introduction to the Acquisition

In a significant move that marks Rava Partners’ entry into the Middle East, the fund manager has acquired Hartland International School for an impressive $100 million. This acquisition is notable not only for its size but also for signaling Rava’s strategic focus on the K-12 educational sector within the Gulf Cooperation Council (GCC) region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

About Hartland International School

Founded in 2015, Hartland International School is set on a sprawling 9-acre campus in Mohammed Bin Rashid City, a mere 10-minute drive from the iconic Burj Khalifa in Dubai. This school provides a comprehensive UK curriculum and currently serves over 2,050 international students. The campus is operated under a long-term lease by Meraki Education, which also manages other prestigious educational institutions such as the North London Collegiate School branches in Dubai and Singapore.

Hartland International School provides the UK curriculum for 2,050 students.

The Strategic Rationale Behind the Deal

Rava Partners envisions this acquisition as a foundation for growth in the education sector across the GCC. Joe Gagnon, co-head of Rava, expressed optimism about the region’s demographic trends and the growing demand for high-quality educational offerings. The expected rise in student enrollment and the increasing desire for premium educational facilities makes this investment particularly enticing.

“Education-focused real assets represent a compelling opportunity," Gagnon noted, emphasizing the positive outlook for K-12 education in the region.

The Role of Elevate

Rava Partners made this acquisition through its portfolio company, Elevate, which was established in collaboration with its India-based operating partner, Alta Capital. Elevate specializes in developing and managing premium K-12 schools and student housing facilities. With a foothold in India, where Elevate manages over 30 educational assets valued at $1 billion, this foray into Dubai represents Elevate’s ambition to expand its influence in the educational infrastructure sector.

Sid Gupta, founder of Alta Capital, praised Hartland International School as a prime example of the exceptional educational infrastructure present in the GCC. Gupta noted that Elevate’s expertise positions them well to identify and capitalize on similar opportunities.

Rava Partners co-head Joseph Gagnon

The Seller’s Perspective

The seller, NBK Capital Partners Real Estate Fund, had acquired Hartland in 2018 for $95 million, making Rava’s recent investment a profitable exit for them. Yaser Moustafa, head of investments at JHEMPIL, the new owner of NBK’s management unit, viewed this transaction as a demonstration of the growing interest in educational infrastructure. He expressed confidence in Elevate’s potential as a long-term partner for Meraki Education and local businesses.

Future Prospects in the APAC Region

Rava Partners has made a significant commitment across the Asia Pacific, with over $3 billion dedicated to 18 different real estate ventures. The firm recently expanded its presence in the rental housing sector, securing a majority stake in Dash Living, a platform managing approximately 2,000 rooms throughout the region.

As part of their strategy, Rava is also concentrating on Japan, viewing it as ripe for investment opportunities. The company’s integration of diverse real estate assets highlights their commitment to growth and adaptability in various markets.

In addition, a successful privatisation effort with Samty Holdings demonstrates Rava and Hillhouse’s intent to streamline operations in Japan’s residential market, further solidifying their presence in the APAC real estate landscape.

Conclusion

Rava Partners’ acquisition of Hartland International School stands as a pivotal investment in the expanding educational sector of the Middle East. With strategic plans in place and a clear vision for the future, Rava’s efforts reflect a growing trend towards quality education in regions poised for growth.