Old Mutual Alternative Investments' Education Investment Impact Fund of South Africa (EduFund) has concluded a ZAR 67 M investment to build a new school in Walmer Park, Gqeberha (formerly known as Port Elizabeth). The new school, a combined primary and high school named Stedin College, results from a partnership between EduFund, Edinvest Schools and the Van Daalen family.

The school will have the capacity to accommodate 1,600 learners, mainly from the local community, considerably boosting quality, affordable learning opportunities in the Eastern Cape. "EduFund is honoured to be partnering with two school operators with such a long track record in providing quality affordable education to disadvantaged communities on the Stedin College project. Investing in quality educational infrastructure allows investors to make a lasting impact on the society in which we live," says Kelly Joshua, Head of Education Investments at Old Mutual Alternative Investments (OMAI).

"Stedin College, in particular, is a school development we are excited about as it improves access to quality education where there is a dire need," she says.

Edinvest Schools is a black-owned education operator with a growing portfolio of schools, while the Van Daalen family has been operating schools in the Eastern Cape since 2003. "What is particularly attractive about this transaction is that we have a long-standing relationship with both partners in this deal, which gives us added confidence in its success," says Joshua.

The two parties have joined forces to establish and operate Stedin College in partnership with EduFund and the support of OMAI, which has been investing in the education sector since 2011.

EduFund is OMAI's second education investment impact fund that finances and invests in the independent education sector in South Africa – across sub-sectors and market segments – to enhance the supply of quality education in the country while providing investors attractive, risk-adjusted returns.

Joshua says that the deal's contribution to transformation in the education sector is a focus area for OMAI. She explains that Stedin College will be operated by a 50:50 joint venture between Edinvest and the Van Daalen family and will focus on further positive transformation outcomes in the schools' construction, management, and staffing.

"Education is a 'top 4' priority spend for South African consumers, making education investment attractive from an absolute returns perspective as well as a good defensive strategy. South Africa has a growing population, a growing middle class, and a lack of adequate supply in the public education sector.

"We see continued growth in South Africa's independent education sector driven by these factors, enabling EduFund to provide investors with the opportunity to positively transform communities whilst achieving a risk adjusted return on investment," she concludes.