Client: Alpha Plus
In the last five years or so, the independent schools market has matured quite rapidly. Venture capitalists and other financial institutions have recognised opportunities for investment in independent schools, particularly through acquisition of businesses or sale and leaseback.
We have advised Alpha Plus over many years in support of the development of the business into a leading provider of independent schools and colleges. We have undertaken valuations for acquisition and re-financing, provided planning consultancy for new school premises and helped to minimise business rates liability. We have also provided informal valuation and property due diligence advice to the purchaser of the company in the £110 million transaction completed in December 2007.
We expect the sector - which is dominated by charity providers - to continue to consolidate, offering further opportunities for Alpha Plus and others. Our education team has been at the forefront of this trend. It has recently agreed a letting of two charity schools in Swansea to Cognita, together with a transfer to them of the business, and the sale of two freehold interests, one in South Wales and one in North London, also to Cognita. All transactions were completed off market and in confidence.
The property assets are a key driver of value. For LaSalle Investment Management, we have recently provided property due diligence, consultancy and valuation advice on the acquisition of two schools in London, subject to new long-term leasebacks to the operator. The price reflected a sub 6% initial yield.
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