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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
