Advtech seeks property expansion

The properties division of JSElisted private school owner Advtech intends to grow its asset base to R6bn by 2022.

The division is involved in school design, development, construction and facilities management. It operates more than 100 education facilities.

There is the possibility that Advtech could list its properties separately in the future under a real estate investment trust (Reit). Many listed property investors are hungry for more specialised Reits entering the JSE, said Old Mutual Investment Group’s Evan Robins.

A student-housing Reit is set to list next month, making it the first education-based Reit in SA.

Advtech owns the majority of its sites and campuses, with a small number of sites on longterm leases or leased with an option to buy.

The schools division includes seven brands with 90 schools in SA, as well as Gaborone International School in Botswana.

Vongani Mbhokota, Advtech Properties executive, said the company’s expansion in the schools and tertiary sectors in SA and the rest of Africa would further consolidate its market position as the “largest education provider in Africa”.

He said the company had an “exciting growth plan with secured land banks” across the continent that would be rolled out in coming years.

There were significant growth opportunities across Africa, where demand for private education was rising in line with a burgeoning middle class.

“A large portion of the planned expansion will be through Advtech’s own developments, with the remainder through joint-venture partnerships with other developers and leasing of properties where these make strategic and business sense,” said Mbhokota.

“Given our quality offering, diversity of brands for targeted markets and unparallelled experience in the private education sphere, we have a significant competitive advantage over other players seeking to enter this growth market,” he said.

Balance sheet flexibility would support an “ambitious but considered growth strategy”. is the asset target the properties division of Advtech aims to reach by 2022