JLL advises NPS International School on campus solution in Singapore
Innovative real estate solution designed to help respected Singapore international school to operate across two campuses.
SINGAPORE, 10 MAY 2023 - JLL (NYSE: JLL) today announced that it has successfully provided a customised advisory and transaction solution to Singapore-based NPS International School, allowing the educational institution to implement a split campus strategy to better serve its community. The transaction is significant for the Singapore educational real estate sector and represents a unique arrangement in the private market, with JLL advising on and executing the acquisition of 11 Hillside Drive, an approved school campus with a circa 92-year leasehold tenure, and the lease of a standalone building at 25 Scotts Road in the Orchard area.
JLL drew on its expertise as the leading education real estate advisor in Asia Pacific to deliver a unique solution for NPS International School. In Singapore, real estate solutions for Foreign Systems Schools (FSS) are administered by the government statutory boards and are limited to either a Request for Information (RFI) process for greenfield developments or tender process for existing Ministry of Education (MOE) school premises, both of which are limited and highly competitive. With the impending lease expiry of NPS International School’s previous school campus in Chai Chee, JLL and the School worked over a period of 18 months to secure a solution in the private market, while working closely with the relevant authorities to secure the required approvals.
“With limited land and a variety of competing uses in Singapore, successful operators such as NPS International School faced some challenges to find the optimal real estate solution. Given that a suitable and single location replacement in the private market capable of housing our entire student population was simply not available, JLL worked in collaboration with us to pursue a split campus strategy. We are delighted to have partnered with JLL on an out-of-the-box solution that benefits our entire school community,” says Bala Shankar, Founder Director, NPS International School.
JLL conducted a comprehensive market search, explored all potential solutions in context of the school’s operational requirements, timing, financials, and risk implications. The first phase of the strategy was the acquisition of 11 Hillside Drive, which was negotiated on a private treaty basis. NPS International School estimates that this premise can accommodate circa 700 students.
The search for a second campus was broadened to include all potential lease premises, and 25 Scotts Road was eventually chosen. This campus is expected to add vibrancy and activity-generating uses to the Orchard District and offer students a unique learning environment. The school estimates this campus can accommodate circa 900 students.
The split campus solution enables NPS International School to continue providing high quality and affordable educational experience to its families and children. According to JLL, favourable demographics and greater disposable income across Asia, are expected to encourage operators and investors to require more real estate solutions for educational institutions.
“Across the region. we see opportunities for investors and developers to partner with school operators and develop capital and real estate solutions which are tailored to local regulations in each market. Given the demand dynamics and defensive nature of the asset class, investors can target core/core-plus propco returns, with further upside possible with partnerships or investment into the business opco,” says Rohit Hemnani, Chief Operating Officer and Head of Alternatives, Capital Markets, Asia Pacific, JLL.
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.