The Cairo for Investment and Real Estate Development (CIRA) is planning to establish a private equity fund in the education sector by the end of 2022.
This is in addition to targeting the full acquisition of Starlight Education Group within three years, after it completes raising the ownership stake to 80%.
CIRA is in talks with a syndicate of international banks to obtain financing for its planned applied tech university.
The company is negotiating with three banks for a credit facility that would cover 40-50% of the EGP 2bn project. Moreover, it is also planning to invest up to EGP 500m to set up four language schools in Qena, New Assiut, New Rashid, and Alamein by 2022.
CIRA has released its business results for the six-month period ending 28 February 2021, indicating that revenues were up by 14% (adjusted: 23%) year-on-year (y-o-y). This saw the company’s revenues rise to EGP 758.8m in the first half (H1) of fiscal year (FY) 2020/21.
Gains for the period were further enhanced at the gross profitability level, which grew by 23% (adjusted: 40%) y-o-y to EGP 514.5m in H1 of FY 2020/21. It was represented in a GPM margin growth of 5.2 pps (adjusted 8.2 pps) y-o-y to 68%.