(Alliance News) - Georgia Capital PLC on Friday said it will expand its K-12 education business through acquiring a new campus for the affordable segment of the business and agreeing to buy a land plot to expand another campus for its premium and international schools.
The Tbilisi-based investor focusing on domestic businesses in Georgia said the new affordable-segment campus has a capacity of 1,200 students, currently providing education to 310. With this investment, it will increase the built capacity of the affordable segment to 4,700 students from 3,500.
It is located in the Saburtalo district, which it noted as "one of the densely populated areas" in the Georgian capital of Tbilisi, with a "considerable" surrounding residential area. The campus includes 6,000 square metres of building facilities and a 1.1 hectare land plot.
Georgia Capital said this campus will operate under the existing affordable brand in its portfolio, Green School, following the planned rebranding starting from the 2023 to 2024 academic year. The new investment will take the number of Green School campuses to four from three.
The project is in line with its capital allocation programme, targeting the expansion of the affordable segment in its education business, the company said.
Georgia Capital also said it signed a binding agreement to acquire a land plot located adjacent to a operational campus for its premium and international schools.
Once completed, it anticipates this will increase its total pipeline capacity to 2,760 students by 2025 from 2,410 at present. Within this, it said this would increase the pipeline capacity of its premium and international segment to 1,550 students from 1,200.
"With these acquisitions, we are further expanding our private K-12 education business, where we see attractive opportunities for a scaled player," said Georgia Capital Chair & Chief Executive Officer Irakli Gilauri.
"I look forward to working with our management teams to make our top-class educational services accessible on a larger scale."
Shares in Georgia Capital were down 0.4% to 832.52 pence each in London on Friday morning.
By Greg Rosenvinge, Alliance News reporter
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Georgia Capital (CGEO)