Strategies for ensuring secure return

on investment when investing in

new educational facilities

Dr Bader Aloliwi,

Chief Executive Officer,

Agenda:

• Analysing the historic performance of similar

schools in the region to get a better indication

of future performance over the next 10 to 15

years

• Assessing the commercial viability of long-

term operational costs including maintenance,

enrolment projections and community needs

• Evaluating capital costs for new educational

facility development

• Evaluating capital costs for new educational facility development

Of the total cost, The

land price is up to 35%

18,100 m² AED 18,508,320 AED 1,023

18,302 m² AED 45,000,000 AED 2,459

10,423 m² AED 6,000,000 AED 576

29,000 m² SAR 53,000,000 SAR 1,828

Sample land prices

• Evaluating capital costs for new educational facility development (cont.)

Buildings

(up to 50%)

• Evaluating capital costs for new educational facility development (cont.)

• Other facilities

(sports, Auditorium)

• Site development

(Perimeter, parking)

• IT infrastructure

• Furniture

(up to 15%)

• Evaluating capital costs for new educational facility development (cont.)

Land = 35%

Buildings = 50%

Others = 15%

______________

100 %

• Assessing the commercial viability of long-term operational costs:

As the land price is very high, one needs to Maximize the

utilization of the land (Hence the ROI):-

• Extra floor (B, G, 1F and 2F)

• Sport facilities

• Auditorium (large)

Green Buildings Benefits:-

• Reduce operating costs

• Improve occupant productivity

• Enhance asset value and profits

• Optimize life-cycle economic

performance

• Reduce waste streams

Source: http://www.epa.gov/

Operational Cost … “higher”

Setup cost

“Lower”

Long-term operational cost

• Assessing the commercial viability of long-term operational costs:

With the enrolment projections in mind, one may think of having

the school construction in 2 or 3 stages

Expand

Use

Build • This model is excellent with

greenfield projects

• If you are moving your

school to a new location

then you may consider one

stage project

• Analysing the historic performance of similar schools in the region to

get a better indication of future performance,

One must keep in mind the following:-

• Types of curriculum/accreditation

• Rank of the school

• Geographical location

• Tuition range

• Local regulations (new)

Thank you

Q&A