Cerestra, an educational infrastructure focused fund promoted by Religare Enterprises, is acquiring the real estate portfolio of K-12 schools from Bengaluru-based Jain Group of Institutions (JGI), as per a report in The Times of India.
The fund will acquire 74% stake in the real estate assets of these schools, promoted by Chenraj Jain’s Arka Eduserve, a wholly owned subsidiary of JGI – in two tranches for roughly $35 million (Rs 240 crore), the report added.
The acquisition will aid Cerestra’s future plan to build a network of schools and eventually list them on the stock exchanges through a specialist real estate investment trust. The fund typically invests in education infrastructure assets, primarily land and building of education institutions operating in K-12 segment.
The fund will initially acquire assets of six institutions in Karnataka, Maharashtra and Madhya Pradesh, and another six beginning June. The deal will also give Jain an option to explore a buyback of assets after 10 years, providing an 18% return for the investor, the report said.
Cerestra, with a targeted initial corpus of Rs 1,000 crore, is also in talks with other school chains like GEMS and Zee-owned Mount Litera to build a portfolio of educational assets.