Johannesburg - JSE-listed private education company Curro Holdings
signed an investment deal with Old Mutual and the PIC on Tuesday to
expand private education to those who cannot afford it.
The deal would see the number of private community
schools, also known as Meridian schools, increase to 11 in the next
seven years, Curro CEO Chris van der Merwe said in a statement.
Old Mutual Investment Group SA (Omigsa) provided a R400m loan while Curro injected R40m into the initiative.
"This is meant to target families that earn R200 000 a
year. These schools will not be built in affluent areas, as we want
private schooling to be accessible to all.
"These schools, of which three are already in operation
under the Meridian banner, are more accessible and affordable than
other Curro schools. School fees range from R900 to R1 300 per month."
The Public Investment Corporation, Africa's largest
pension fund manager, originally approached Omigsa to find ways to
address a shortage of affordable schools in South Africa.
"This led to the establishment of Omigsa's schools and
education investment fund of SA, which has already allocated more than
R500m for education projects."
Christine Glover, head of development impact funds at
Omigsa alternative investments, said the funds provided capital for
infrastructure expansion and could also be used to train teachers.