A new business emerges in Romania: private student campuses
Private student campuses have become an appealing business opportunity for real estate developers, as the number of students in Romania is way higher than the number of available places in state campuses.
Romanian investor Liviu Tudor, one of the biggest office space owners in Bucharest, was among the first to invest in such a private campus in Bucharest. His West Gate Studios project required an investment of about EUR 50 million, which he did as a part of his real estate group’s CSR activities, Tudor said in an interview with Wall-Street.ro.
However, the business is profitable, as the company that manages the campus had a turnover of EUR 4.5 million and a new profit of EUR 0.92 million last year, which translates into a net profit margin of over 20%, according to official data from the Finance Ministry. West Gate Studios includes little over 900 rooms, which accommodate over 1,800 students each year.
A group of foreign investors from Belgium and the UK have also invested in private student campuses in Bucharest, as part of a project called ARCCA. The developers have already finished two campuses with a total of 1,600 accommodation places, and plan to reach 5,000 places in the next three years. The total investments are over EUR 40 million, according to Ziarul Financiar.
Private education group Lumina (The Light), which owns the International Informatics High School in Bucharest and the International School of Bucharest, has also invested some EUR 12 million in a private campus in Bucharest, which opened on September 14 this year.
Private universities such as the Romania-American University have also invested in campuses to accommodate their students.
Although they are more expensive than state campuses, private campuses offer better conditions for students, and can be a cheaper alternative to renting studios or apartments in Bucharest.
editor@romania-insider.com
(Photo source: West Gate Studios on Facebook)
