Common vision drives R97 million investment in new schools
05 March 2014 | Company News & Results | Old Mutual | Old Mutual
Old Mutual Investment Group and its investments partners today announced a R97 million deal to fund the development and operations of two new low-fee independent schools with the first being developed in Soshanguve to open in January 2015. The deal is the fourth of its kind for the Schools Investment Fund, an initiative established by the Public Investment Corporation (PIC), the Government Employees Pension Fund (GEPF) and Old Mutual, and will ultimately accommodate a combined 3 310 learners a year.
"What’s exciting about this deal is that it brings together a diverse group of experts united by a common vision of creating affordable quality schools that cater to the underprivileged learners,” says Lala Steyn, the fund’s asset manager from Old Mutual Investment Group. "It further reinforces the Schools Investment Fund’s mandate of creating new desk space without compromising the quality of the education.”
The two schools will be built and managed by the newly established Barnstone Education Management Company, whose executive management team possesses specialist skills required for the successful management of affordable independent schools.
Pierre Tredoux is the executive director and a founder of the Barnstone Group, a company that has advised many of SA’s leading organisations on business strategy and organisation design. In 2011, Barnstone Group conducted a business skills training academy for young black graduates who were struggling to secure meaningful employment.
"Following this experience, we realised the urgent need to invest in education as well as the opportunities offered by developing affordable independent schools from the ground up,” explains Tredoux. "This led us to partner with the educational specialists of Prestige College Hammanskraal and property developer, Jannie Fourie.”
Thana and Robby Pienaar run the highly successful Prestige College outside Pretoria. Thana was involved in establishing the school in 1991 and remains school principal. Her husband Robby Pienaar, who is CEO, joined her in 1997.
"The Pienaars’ experience and expertise will be invaluable in the success of the new schools, says Steyn. "Prestige College boast an excellent academic track record and since 1991 it has had a 100% matric pass rate, with an 80% bachelor pass rate in 2013.
"The fourth member of the executive management team, Jannie Fourie has extensive experience in property and business development.”
Dr Daniel Matjila, the Chief Investment Officer for the Public Investment Corporation explains that this brings to 16 the number of schools currently being financed by the fund. "While endeavouring to contribute towards South Africa’s developmental objectives, the initiative also gives careful consideration to the deal structure in order to ensure these investments generate economic returns for the clients on whose behalf we invest,” he says.
"This investment further demonstrates that in order for us to deal with the challenges of providing quality basic education as a nation, the public and private sectors need to work together,” added Steyn.
As a primary investor in the Schools Fund, the GEPF’s acting principal Executive Officer Joelene Moodley added that quality education is a potent weapon against generational poverty. "What is most pleasing about this investment is that it will directly impact the lives of the people in Soshanguve, including our own members and pensioners’ children,” she says. "We also recognise that a successful economy requires an educated workforce.”
