Hyderabad: Oxfordcaps, Asia’s first and branded technology-enabled student housing chain backed by Kalaari Capital, Times Internet, and 500 Startups has entered into a joint venture with Hyderabad-based, education infrastructure asset company Cerestra Advisors to focus on on-campus and near-campus student housing.
Under this joint venture, Cerestra and Oxfordcaps have created a separate entity to acquire, operate, and develop student housing infrastructure and to partner with various educational institutions. Cerestra has set aside $125 million (over Rs 940 crore) for investments in student housing infrastructure, and the new entity targets to close with 20,000-25,000 bed capacity.
Oxfordcaps, which clocked 75x growth in FY ’19-20, has an experience of managing over 50 hostels in eight cities across India. These include multiple on-campus and near-campus facilities for universities such as AISSMS, SVIET, Presidency University, RV College, Ahmedabad University, IFIMB and Lexicon Management Institute and has emerged as a partner for Cerestra, as they share the same vision for on-campus and near-campus student housing.
Annu Talreja, CEO and co-founder, Oxfordcaps says, “Joining forces with Cerestra will give both of us an edge to emerge as the most efficient entity to provide educational institutions a one-stop-shop for acquisition, operation, and development of on-campus and near-campus student accommodation.”
Jasmeet Chhabra, managing partner, Cerestra commenting on the JV said, “We have been on the lookout for like-minded partners who understand operating the student housing space. Cerestra would be providing a holistic solution to educational institutions by giving both liquidity by acquiring the student housing assets, as well as providing a new level of living experience to the students through this JV. After being in prolonged talks with Oxfordcaps, we admire and resonate with their vision for a globally competitive and profitable student accommodation operations and infrastructure in India and parts of Asia. Together we intend to create a positive impact in this space.”
Vishal Goel, partner, Cerestra Advisors told Telangana Today, “The $125 million investment will be towards deployment as a part of the phase I of the joint venture activity in the next 6-9 months from the time mobility restrictions are lifted.”
In mid-2018, Cerestra announced plans to add on-campus student housing to its portfolio and become a full-service education infrastructure asset owner. After having acquired a 3,000-bed facility at Jain University in Bengaluru, it now eyes an all-India presence.
“Cerestra is looking to create a 1,00,000-bed capacity over the coming years pan-India in partnership with Oxfordcaps. Universities, engineering and medical colleges in Telangana and other States will be partnered across major cities, tier-2 and tier-3 cities,” added Goel.
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