Warburg’s affiliate Baskin Lake Investment Ltd, has acquired HDFC Ltd.’s 24.48 percent stake along with a primary investment in the company.
Existing shareholder Goldman Sachs and Baskin Lake will support the future growth of Good Host by investing additional capital to fund the company’s growth objectives, added the statement.
Set up in 2017 by Nimesh Grover and Stanley D’britto, Good Host Spaces is India’s largest on-campus third party Purpose Built Student Accommodation service provider with a presence in 5 cities.
It was initially backed by Goldman Sachs and HDFC Ltd.
Currently, Good Host is operating approximately 18,000 beds at universities, such as Manipal University, O.P. Jindal Global University and Shoolini University.
The company is also in conversation with several other institutes in India to expand its portfolio to 50,000 beds in the near term.
The higher education landscape in The new National Education Policy will improve the global competitiveness of Indian universities, which in turn will require high-quality, professionally-managed student housing facilities. This natural evolution will result in a significant growth of this asset class as seen in other developed countries, company said.
“Good Host is confident that with Goldman Sachs and Warburg Pincus as our shareholders, our company will further strengthen its leadership position in this space and bring many more partner universities and students into our platform by providing contemporary student housing to live, learn and grow in a safe and secure environment,” said Nimesh Grover, CEO Good Host.
“Good Host has had a remarkable journey since inception, from introducing the business model of operating student accommodation in partnership with universities in India, to scaling this platform to become the country’s largest student accommodation provider. This partnership delivers critical growth capital to universities helping them augment their educational capabilities while modernizing and introducing global best practices to the student housing assets,” said Anish Saraf, Managing Director at Warburg Pincus India.
Warburg Pincus LLC has more than $60 billion in private equity assets under management.
The fund recently invested $100 million, or about Rs 730 crore, in consumer electronics firm boAt in January, and Rs 800 crore ($110 million) for a 0.49% stake in Adani Ports and Special Economic Zone Ltd, the flagship company of billionaire Gautam Adani.
In October last year, Warburg’s affiliate Orange Clove Investments BV invested about $95 million, or about Rs 700 crore, in NBFC Home First Finance Company India Ltd.
Warburg’s major investments include jewellery chain Kalyan, apparel label BIBA, multiplex chain PVR, Apollo Tyres, CarTrade and Airtel DTH.
