Institutional set ups, the in thing for Real Estate Joint Ventures

By Pallavii Pitale

 In most of the new townships or special economic zones under development, one can see the presence of educational institutes.

It is one of the most beneficial project to start within a large township or a SEZ at the beginning, which can drive in more revenue in the form of fresh investment for homes and offices. Access to social infrastructure like schools and colleges serves as an attractive feature to sell any project.

 India presently has a well developed and ever growing $10 billion worth higher education sector. Knowing the fact, More and more developers in the country, are entering into partnerships with foreign investors to set up campuses for Educational Institutes and Universities. Such  tie ups between an international institution and a developer, socially benefits the region and also allows the developer to create a system around the institute, providing retail, office and residential development.

The companies in  collaboration with educational institutes follow a build-and-rent business model. While the developer acquires the land and builds the infrastructure for the educational facility, the institute runs the school or college. It either pays rent or works on a revenue-share model.

 Many such partnerships are now seen mushrooming in various projects across the country.

One such example is of the Lavasa city. It  has invested almost 100 crores for the educational space with campuses of various institutes and universities such as Symbiosis Institute- Pune , Christ University- Bangalore, Institute of International Business Relations of Germany, Switzerland based hospitality management institute Ecole hoteliere de Lausanne and Educomp.

Other such projects are being developed at various places like Hyderabad, Chennai and Karnal .