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INVESTMENTS HOUSE | WWW.INVESTMENTS-HOUSE.COM
Canadian School in
Sharjah
DISCLAIMER
THIS INFORMATION MEMORANDUM DOES NOT NECESSARILY CONTAIN ALL THE INFORMATION
THAT A PROSPECTIVE INVESTOR MAY NEED TO CONSIDER IN ITS INDIVIDUAL CIRCUMSTANCES
ABOUT THIS PROPOSAL. ACCORDINGLY, EACH PROSPECTIVE INVESTOR SHOULD REVIEW THE
INFORMATION IN THE INFORMATION MEMORANDUM TO DETERMINE WHETHER IT REQUIRES
FURTHER INFORMATION. THE PROSPECTIVE INVESTOR SHOULD REQUEST FURTHER INFORMATION
FROM INVESTMENTS HOUSE OR AL MULLA GROUP.
INVESTMENTS HOUSE, AL MULLA GROUP AND THEIR RESPECTIVE AFFIALITES AND ADVISORS GIVE
NO WARRANTY ABOUT THE ASSUMPTIONS, FINANCIAL DATA, AND FINANCIAL PROJECTIONS
CONTAINED IN THE INFORMATION MEMORANDUM.
THIS DOCUMENT MAY NOT BE DISTRIBUTED EXCEPT TO SUCH PERSONS AS ARE PERMITTED UNDER
THE OFFERS OF SECURITIES REGULATIONS ISSUED BY THE CAPITAL MARKET AUTHORITY.
THE CAPITAL MARKET AUTHORITY DOES NOT MAKE ANY REPRESENTATION AS TO THE ACCURACY OR
COMPLETENESS OF THIS DOCUMENT, AND EXPRESSLY DISCLAIMS ANY LIABILITY WHATSOEVER FOR
ANY LOSS ARISING FROM, OR INCURRED IN RELIANCE UPON, ANY PART OF THIS DOCUMENT.
PROSPECTIVE PURCHASERS OF THE SECURITIES OFFERED HEREBY SHOULD CONDUCT THEIR OWN
DUE DILIGENCE ON THE ACCURACY OF THE INFORMATION REGARDING THE SECURITIES. IF YOU DO
NOT UNDERSTAND THE CONTENTS OF THIS DOCUMENT YOU SHOULD CONSULT AN AUTHORISED
FINANCIAL ADVISOR.
Investments House
Investments House is a leading investment management organization in the MENA region. Located
in Dubai, United Arab Emirates, the commercial hub of the Middle East, Investments House offers
and manages investment vehicles for individuals, institutional investors, partners and international
clients.
With our proven track record and expertise, Investments House has generated over AED 2.4 billion
since December 2006. Only a select few investment management organizations have matched our
success. Today, Investments House is recognized as a premier developer and leader in the field of
venture capitalism based on our outstanding growth and performance. We credit our success to
consistently following our core values of integrity, honesty, transparency, superior customer service
and dedicated commitment by our staff. We demand and demonstrate the highest code of conduct
by the board of directors and our associates.
Our mission is to lead in the investment management industry and to build strong broad and on-
going relationships and strategic alliances with our investors and partners.
Our Objective is to build strong corporate identity, diversify portfolios, form strategic alliances and
establish enduring relationships with our investors and partners.
About Sharjah
Sharjah is the third largest emirate with total land area around 2,600 sq km with diverse geography.
This emirate experienced real progress during time period of H.H.Sheikh Sultan bin Mohammad Al
Qassimi. The discovery of Mubarak oil field near island of Abu Musa in 1971 also played great role in
progress and development of this emirate. Today Sharjah is known as cultural and sports capital of
UAE. It is also world famous for its cricket stadiums and thrilling one day international cricket
matches. Due to low crime rate and excellent accommodation facilities this city has made it world
renowned and has drawn attention of sports lover across the globe.
Sharjah displays a perfect blend of old and modern life style. This city possesses a modern and well
equipped port at Khorfakkan that provide unmatched services and facilities for the ships don’t need
to enter in Gulf. City has some of the world famous waterfronts hotel, green gardens, lake facing
buildings and restaurants. Other attractions include modern and traditional souks that offer good
bargains to buyers. Above all, this emirate has well maintained museums there you can even check
80 million old fossils.
Sharjah also showed great potential in construction and property development projects. During
recent year this emirate has been experiencing huge rise in demand of accommodation
places including apartments and furnished apartments. This has also attracted local and foreign
investors to invest in property market of Sharjah. Despite this fact that real estate Dubai is leading
the property market of UAE, Sharjah also offers really exciting and promising investments
opportunities in construction and property business.
This emirate is a much economical place to relocate as compare to Dubai. This city has showed rapid
progress in different sectors like construction and development. You can find numerous glittering
skyscrapers along the costal line of this emirate.
Sharjah is opening its property market to foreign investment for the first time as expatriates are
granted the right to buy homes.
Leases of up to 100 years will be granted as the emirate benefits from spillover property demand
from neighbouring Dubai.
For the first time in its history, the Sharjah government has passed a law enabling expatriates from
any country in the world to buy property in the emirate providing they hold a UAE residence visa.
Expatriates will be able to own property in the emirate on long leases but not land, government
officials said . Investment will be restricted to new investment areas on the edge of the city centre.
Initially only plots will be made available to sub-developers to build apartment and villas.
The first new development to offer the long leases will be Tilal City, a 25 million square feet
development on Emirates Road close to the Al Dhaid Interchange
Officials said the new rules would create “new cluster cities” outside central Sharjah which would
reduce traffic and congestion in the main city centre.
This is a historic milestone for Sharjah. Traditionally, international investors have focused their
attention on Dubai and Abu Dhabi, but this move will open up a new market, to investors residing in
the UAE.
Based on the number of gated community feasibility studies that Cluttons has been commissioned
to undertake, in close proximity to Sharjah International Airport, we expect to see similar
developments launched in the short to medium term. The current shortage of these types of
communities is causing a real demand from families residing in Sharjah, but also from families who
want to relocate from Dubai in search of affordability.
The new rules are the latest move in attempts to open up Sharjah’s more reasonably priced real
estate market to expatriates, taking advantage of interest from buyers no longer able to afford
Dubai prices.
Real estate rules in Sharjah had prevented anyone other than UAE nationals from owning real
estate, but were first relaxed after the global financial crisis to allow Arabs from the GCC to buy
homes.
Education Growth in UAE
Education regulators are anticipating hundreds of thousands of new students to be enrolled in
private schools by 2020.
With the number of private school students in the GCC expected to triple in the next seven years,
regulators from Abu Dhabi and Dubai have cited the need for hundreds of new schools to
accommodate the increase.
By 2020 the number of students in private schools are expected to reach 280,000, which means an
annual growth of 5 per cent
The private education sector in Abu Dhabi caters to more than 60 per cent of the total student
population in the emirate – a quarter of whom are Emirati – and the sector is growing across the
UAE.
Private education has witnessed the most growth with students, so there are investment
opportunities in private education across the UAE.
Dubai has also experienced growth, with a 7 per cent annual increase in student enrolments in
private schools. If the trend continues, the number of students will jump from 225,000 to 360,000 by
2020.
That is a 60 per cent increase from the existing student population. The UAE needs 110 new schools
by 2020 and it is one of the highest growth areas, followed by higher education.
The UAE’s private education market is about the same size as India’s and China’s combined. That’s
just a sense of the scale of what we’re dealing with here. The current number of students in private
education in the GCC is predicted to triple by 2020. The rest of the world is looking at the region with
great interest.
Western-branded higher education institutions in the country are growing by 15 per cent a year,
with the UAE hosting 37 international branch campuses – the highest number in the world.
According to a study, the UAE has become a preferential educational destination for students,
ranking 15th in terms of quality of education in a World Economic Forum (WEF) list of 148 countries.
Between 2007 and 2012, the number of primary school students in UAE private institutions rose
from 1,897,000 to 2,654,000, a compound annual growth rate (CAGR) of 6.9 per cent. The number of
students at UAE educational institutions, predominantly in Abu Dhabi and Dubai, are increasing
partially due to families from other Middle East nations migrating due to instability in their home
country.
Private School Growth in Sharjah
More than Dh1 billion has been invested in private education in Sharjah.
The assistant director general at Sharjah Chamber of Commerce and Industry has said that there
were 140 private schools worth Dh1.26bn.
All investors in the private education sector are urged to turn to innovative ideas that would further
improve the standard of education in the emirate. This is an excellent opportunity to have
businessmen and educators interact and share ideas on the best way to boost education, and give a
brighter future to the children.
Canadian Private School
A Canadian Private School curriculum follows the Alberta Program of Study in coordination with the
UAE Ministry of Education. Alberta Education’s high quality standards of instruction suit the needs
and requirements of UAE’s Ministry of Education regulations. Alberta Education strongly promotes
trilingual education and thus responds to the demands of our multicultural, multilingual school.
Canadian Private School grants Alberta high school diplomas to students based on a credit system.
To complete senior high, students must be awarded 100 credits. Students are awarded credits for
each course they complete with satisfactory results. In addition, Grade 12 students must write and
pass diploma examinations in core subject areas to graduate. Diploma examinations are provincially
administered and account for 50 percent of the students’ final grade in the course.
Alberta’s High School diploma is recognized across North America and throughout the world. High
school graduates have the opportunity to continue their education at Alberta’s fine post secondary
institutions or to attend some of the most prestigious universities and colleges in the world.
Alberta Program Subjects: English Language Arts, Mathematics, Science, English Social Studies,
Physical Education, Art and Music, Health, Drama, Information and Communication Technology (ICT)
and French.
UAE Requirements: Arabic, Islamic Studies and Arabic Social Studies are taught in accordance to the
UAE Ministry of Education specifications.
Why Canadian Education
The most important question any parent considering a school for their child would ask is this – what
is so special about Canadian education? The answer is deceptively simple. The essential goal of the
Canadian teacher in the Canadian school is to educate students so that they have learned to learn!
That means that students become increasingly capable at using their developing academic and
intellectual talents to analyze, synthesize and problem solve. Certainly facts are important but the
ability to use knowledge gained and skills developed to deal with new school and life challenges is
essential. In effect Canadian education teaches students to think and to apply their learning in
effective ways to novel situations. It is this fundamental ability that makes students with a Canadian
education so successful in post-secondary schools and in their adult life.
There are, of course, other features of Canadian education worth acknowledging. Learning often
takes place co-operatively and in activity-based ways. That means that the teacher provides students
with information and certain skills and then challenges them to develop their learning further
through related and increasingly demanding activities. Simply memorizing factual information and
then doing nothing with it is a waste of student time and energy.
Parent involvement in student learning is also very important. Parents are expected to talk to their
sons and daughters on a daily basis about school. Where parents do not understand what the school
is trying to accomplish or have a concern, they are expected to call and then visit the school to clear
things up. It is often said that Canadian schools, do not just accept students – they enroll families!
Student learning is always most effective when the home-school partnership is strong.
Finally, Canadian education is about the whole child. Students are not simply empty vessels to be
filled with facts and figures. They are unique individuals who are learning and developing every day
as they move from childhood to adulthood. Canadian schools are concerned about each student’s
physical, emotional and social development as well as their performance as learners. Teachers
engage their students in a caring and supportive way – not as friends but as adults concerned about
their total development.
Canadian education has been judged internationally to be of the highest quality. The Canadian
School in Sharjah now brings that educational quality to the students of Sharjah.
Investment Opportunity
The new Canadian School in Sharjah offers a full Canadian instructional curriculum managed by a
very experienced Canadian Principal and delivered by Canadian trained, certificated and experienced
teachers. Our student performance expectations, teaching materials, instructional strategies and
student management practices are the same as those you will find in any Canadian school. We
would be a Canadian school not just in name but in practice.
Canadian School in Sharjah are proud to be the first Canadian school in Sharjah and are committed
to providing an educational experience for each of our students which will challenge them on
intellectual, social and personal levels. We expect much from our students and their families and will
provide the demanding learning environment which supports those expectations.
The Canadian School in Sharjah also appreciates that we are a school which has been welcomed into
an Arabic country with a predominantly Muslim population. We have committed enthusiastically to
provide students with Arabic Language and Islamic Studies programs of the highest quality delivered
by certificated and experienced teachers who are respected members of the school’s academic staff.
The student – parent – school partnership for learning is at the heart of Canadian School in Sharjah’s
efforts as a school to nurture educational accomplishment. We will succeed based as much the
strength of that partnership as on the strength of our instructional programming.
This school is first of its kind offshore Canadian school in Sharjah, which allows the graduates to
enter various Universities in Ontario, Canada, without having to do any entrance assessments.
This is a school which will be known for its academic rigor, focus on each learner as a unique
individual and its emphasis on student engagement in their own learning. Our students will come to
understand the shared responsibility we all have for the further development of a community of
nations tied together by a commitment to tolerance, justice and equality of opportunity. We will
graduate more than educated young people – we will graduate young people well-prepared make a
difference in our challenged world.
The Canadian School of Sharjah is surrounded by thousands of residential areas which makes it a
very demanding and appealing school within this community. It is at a very close proximity to
Sharjah Airport and Sharjah National Park and is easily accessible through various highways including
Al Dhaid Road, Sheikh Mohammad bin Zayed Road and Emirates Road.
Location
Eagle Eye View
Plot Summary
Phase 1 Phase 2
Location/Units Built up Area Built up Area
Sq.mt Sq.ft Sq.mt Sq.ft
Ground Floor 5750.79 61,901.50 1623.94 17,480.09
First Floor 5118.94 55,100.27
1542.46 16603.04Roof Floor 274.19 2951.38
Sub Station Area 73.15 787.39
Gate Entrance 31.92 343.59
Guard Room 29.7 319.69
Total 11278.69 121403.8 3166.4 34083.13
Class Rooms 32 16
Plot Area 17206.15 185,207
Sq.mt Sq.ft
Canadian School in Sharjah
Nos Type Area in sq.mt
32 Classroom 1881.6
1 Biology Lab 64.8
1 Chemistry Lab 54.4
1 Physics Lab 54.4
1 Computer Lab 65.6
1 Library Hall 104.4
1 Computer Room 65.6
4 Internal Hall 1038.96
66 W/C & Toilets 188.76
15 Admin Rooms 765
3 Teacher Rooms 256
2 Clinic 129.48
2 Cafeteria 295.07
Feasibility Report
Description Year0 Year1 Year2 Year3 Year4 Year5
Revenue 14,625,000 21,611,500 33,150,000 42,409,300 48,498,400
Management Fees
Rent Fees
Net Revenues 14,625,000 21,611,500 33,150,000 42,409,300 48,498,400
COGS (3,300,000) (8,600,400) (9,689,040) (11,579,064) (13,518,178) (16,031,881)
Gross Profit (3,300,000) 6,024,600 11,922,460 21,570,936 28,891,122 32,466,519
Gross Margin 41% 55% 65% 68% 67%
SG&A - (2,765,800) (4,034,723) (5,512,560) (6,709,374) (7,716,661)
EBITDA (3,300,000) 3,258,800 7,887,738 16,058,376 22,181,748 24,749,858
EBITDA Margin 22% 36% 48% 52% 51%
Depreciation (171,429) (171,429) (171,429) (171,429) (171,429)
Amortization - - - - - -
EBIT (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430
EBIT Margin 21% 36% 48% 52% 51%
Interest income - - - - - -
Provisions - - - - - -
FX gains/losses - - - - - -
Other income - - - - - -
Other expenses - - - - - -
-
Net Profit (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430
NPBT Margin 21% 36% 48% 52% 51%
NPAT (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430
NPAT Margin 21% 36% 48% 52% 51%
Canadian School in Sharjah
Profit & Loss Statment
Description Year0 Year1 Year2 Year3 Year4 Year5
Assets:
Current Assets:
Cash & equivalents 550,000 4,797,630 12,553,771 28,413,226 50,519,832 75,467,976
Receivables (net) 731,250 1,080,575 1,657,500 2,120,465 2,424,920
Inventory
Projects in progress
Due from sister companies
Due from affliate companies
Receivables & other debit balances - - - - - -
Total Current Assets 550,000 5,528,880 13,634,346 30,070,726 52,640,297 77,892,896
Gross Fixed Assets 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Less: Accumulated depreciation (171,429) (342,857) (514,286) (685,714) (857,143)
Net fixed assets 1,200,000 1,028,571 857,143 685,714 514,286 342,857
Long-term investments
Projects under construction - - - - -
Other long-term assets (net) -
TOTAL ASSETS 1,750,000 6,557,451 14,491,488 30,756,441 53,154,582 78,235,753
Liabilities:
Current Liabilities:
Creditors & other credit balances 1,720,080 1,937,808 2,315,813 2,703,636 3,206,376
Deferred tax liability
Provisions - - - - - -
Total Current Liabilities - 1,720,080 1,937,808 2,315,813 2,703,636 3,206,376
LT Debt - - - - - -
T. Long Term Liabilities - - - - - -
Total Liablilties - 1,720,080 1,937,808 2,315,813 2,703,636 3,206,376
Shareholders Equity:
Paid in Capital 5,050,000 5,050,000 5,050,000 5,050,000 5,050,000 5,050,000
Reserves and Retained Earnings (3,300,000) (212,629) 7,503,680 23,390,628 45,400,947 69,979,377
Total Stockholders' Equity 1,750,000 4,837,371 12,553,680 28,440,628 50,450,947 75,029,377
TOTAL LIABILITIES & EQUITY 1,750,000 6,557,451 14,491,488 30,756,441 53,154,582 78,235,753
Checker - - - - - -
Balance Sheet Statement
Description Year0 Year1 Year2 Year3 Year4 Year5
Net income (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430
Add: Depreciation - 171,429 171,429 171,429 171,429 171,429
Settlements - - - - -
Add: Provisions
+/- change in receivables - (731,250) (349,325) (576,925) (462,965) (304,455)
+/- change in inventory - - - - - -
+/- change in projects in progress - - - - - -
+/- change in due from sister companies - - - - - -
+/- change in due from affiliate companies - - - - - -
+/- change in other debit balances - - - - - -
+/- change in creditors & other credit balances - 1,720,080 217,728 378,005 387,823 502,741
+/- change in provisions - - - - - -
+/- change in deferred tax liability - - - - - -
+/- change in woking capital - 988,830 (131,597) (198,920) (75,142) 198,286
Cash Flow from Operations (3,300,000) 4,247,630 7,756,141 15,859,456 22,106,605 24,948,144
Purchase of fixed assets (1,200,000) - - - - -
+/- change in long-term investments - - - - - -
+/- change in projects under construction - - - - - -
+/- change in other long-term assets - - - - - -
Cash Flow from Investing Activities (1,200,000) - - - - -
+/- change in bank LT Debt - - - - - -
+/- change in Paid-in capital - - - - - -
+/- change in Share Premium 5,050,000 - - - - -
Cash Flow from Financing Activities 5,050,000 - - - - -
Net Cash Flow 550,000 4,247,630 7,756,141 15,859,456 22,106,605 24,948,144
Cash & equivalents at beg. of year 550,000 4,797,630 12,553,771 28,413,226 50,519,832
Cash & equivalents at end of year 550,000 4,797,630 12,553,771 28,413,226 50,519,832 75,467,976
Cash & Cash eq at end 550,000 4,797,630 12,553,771 28,413,226 50,519,832 75,467,976
Cash Flow Statement
Description Year0 Year1 Year2 Year3 Year4 Year5
EBIT (1-t) (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430
Add: Depreciation - 171,429 171,429 171,429 171,429 171,429
Less: Increase in working capital requirements - 988,830 (131,597) (198,920) (75,142) 198,286
Less: Capital expenditure (1,200,000) - - - - -
Free Cash Flow to Firm (4,500,000) 4,247,630 7,756,141 15,859,456 22,106,605 24,948,144
IRR 160.07%
Discounted FCF:
WACC 16.00%
Years 0 1 2 3 4 5
Discounted Factor 1.00 0.862 0.743 0.641 0.552 0.476
Discounted Net Prsent Value (4,500,000) 3,661,750 5,764,076 10,160,482 12,209,281 11,878,136
Acc. Net Present Value (4,500,000) (838,250) 4,925,826 15,086,308 27,295,589 39,173,725
Discounted Payback Period 0 Years 15 Months
Free Cash Flow
Item Y1 Y2 Y3 Y4 Y5
No.of Students 250 375 575 720 800
Avg.School Fees /Student 48,000 48,000 48,000 49,440 50,923
Total School Fees 12,000,000 18,000,000 27,600,000 35,596,800 40,738,400
Other Revenues 2,625,000 3,611,500 5,550,000 6,812,500 7,760,000
Total Revenues 14,625,000 21,611,500 33,150,000 42,409,300 48,498,400
Expected Revenues AED
Item Y1 Y2 Y3 Y4 Y5
Operation Expenses:
Salaries & Related (2,480,000) (3,120,000) (3,963,000) (5,420,204) (7,069,993)
permits/Licenses (70,000) (90,000) (100,000) (106,000) (111,000)
Traning Expenses (156,000) (168,000) (184,000) (202,400) (202,400)
Office Supplies (24,000) (38,400) (61,440) (86,016) (103,219)
Uniform (50,000) (90,000) (148,400) (180,000) (205,000)
transportation Cost (300,000) (450,000) (630,000) (720,000) (820,000)
Books (300,000) (400,000) (540,000) (720,000) (820,000)
Telephone/Internet (20,400) (32,640) (52,224) (83,558) (100,269)
Rent (5,000,000) (5,000,000) (5,500,000) (5,500,000) (6,000,000)
Management Fees (200,000) (300,000) (400,000) (500,000) (600,000)
Total Operation Expenses (8,600,400) (9,689,040) (11,579,064) (13,518,178) (16,031,881)
Net Profit Before tax 6,024,600 11,922,460 21,570,936 28,891,122 32,466,519
Taxes
Net profit After tax 6,024,600 11,922,460 21,570,936 28,891,122 32,466,519
Net Profit After Operating Expenses AED
Item Year 1 Year 2 Year 3 Year 4 Year 5
Administrative Expenses (1,023,750) (1,512,805) (2,320,500) (2,968,651) (3,394,888)
Building Insurance (84,000) (144,000) (187,200) (234,000) (292,500)
Water /Energy (370,000) (407,000) (447,000) (470,085) (493,589)
Professional Fees (20,400) (36,000) (39,600) (43,560) (47,916)
Memberships (6,000) (8,400) (9,660) (11,109) (12,775)
Maintenance (73,125) (162,086) (248,625) (381,684) (436,486)
advertising & Marketing (511,875) (648,345) (828,750) (848,186) (969,968)
Employee Accommodation (168,000) (204,000) (285,600) (371,280) (445,536)
Employee Reimbursement (168,000) (240,000) (312,000) (390,000) (487,500)
Bank Expenses (14,400) (30,000) (33,000) (37,950) (41,745)
Provision for Replacment (146,250) (162,086) (248,625) (318,070) (363,738)
other operation expenses (180,000) (480,000) (552,000) (634,800) (730,020)
Total (2,765,800) (4,034,723) (5,512,560) (6,709,374) (7,716,661)
Selling, General & Admin Expenses
Fixed Cost (9,614,950) (11,404,245) (14,000,224) (16,589,528) (19,639,761)
Variable Cost (1,751,250.00) (2,319,517.50) (3,091,400.00) (3,638,024.45) (4,108,780.60)
Variable Cost per Student (7,005.00) (6,185.38) (5,376.35) (5,052.81) (5,135.98)
Total Revenues per Student 58,500 57,631 57,652 58,902 60,623
Break Even (187) (222) (268) (308) (354)
Net Present Value AED 38,167,207
Stake on Offer (25%) AED 9,541,802

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Canadian school

  • 1. INVESTMENTS HOUSE | WWW.INVESTMENTS-HOUSE.COM Canadian School in Sharjah
  • 2. DISCLAIMER THIS INFORMATION MEMORANDUM DOES NOT NECESSARILY CONTAIN ALL THE INFORMATION THAT A PROSPECTIVE INVESTOR MAY NEED TO CONSIDER IN ITS INDIVIDUAL CIRCUMSTANCES ABOUT THIS PROPOSAL. ACCORDINGLY, EACH PROSPECTIVE INVESTOR SHOULD REVIEW THE INFORMATION IN THE INFORMATION MEMORANDUM TO DETERMINE WHETHER IT REQUIRES FURTHER INFORMATION. THE PROSPECTIVE INVESTOR SHOULD REQUEST FURTHER INFORMATION FROM INVESTMENTS HOUSE OR AL MULLA GROUP. INVESTMENTS HOUSE, AL MULLA GROUP AND THEIR RESPECTIVE AFFIALITES AND ADVISORS GIVE NO WARRANTY ABOUT THE ASSUMPTIONS, FINANCIAL DATA, AND FINANCIAL PROJECTIONS CONTAINED IN THE INFORMATION MEMORANDUM. THIS DOCUMENT MAY NOT BE DISTRIBUTED EXCEPT TO SUCH PERSONS AS ARE PERMITTED UNDER THE OFFERS OF SECURITIES REGULATIONS ISSUED BY THE CAPITAL MARKET AUTHORITY. THE CAPITAL MARKET AUTHORITY DOES NOT MAKE ANY REPRESENTATION AS TO THE ACCURACY OR COMPLETENESS OF THIS DOCUMENT, AND EXPRESSLY DISCLAIMS ANY LIABILITY WHATSOEVER FOR ANY LOSS ARISING FROM, OR INCURRED IN RELIANCE UPON, ANY PART OF THIS DOCUMENT. PROSPECTIVE PURCHASERS OF THE SECURITIES OFFERED HEREBY SHOULD CONDUCT THEIR OWN DUE DILIGENCE ON THE ACCURACY OF THE INFORMATION REGARDING THE SECURITIES. IF YOU DO NOT UNDERSTAND THE CONTENTS OF THIS DOCUMENT YOU SHOULD CONSULT AN AUTHORISED FINANCIAL ADVISOR.
  • 3. Investments House Investments House is a leading investment management organization in the MENA region. Located in Dubai, United Arab Emirates, the commercial hub of the Middle East, Investments House offers and manages investment vehicles for individuals, institutional investors, partners and international clients. With our proven track record and expertise, Investments House has generated over AED 2.4 billion since December 2006. Only a select few investment management organizations have matched our success. Today, Investments House is recognized as a premier developer and leader in the field of venture capitalism based on our outstanding growth and performance. We credit our success to consistently following our core values of integrity, honesty, transparency, superior customer service and dedicated commitment by our staff. We demand and demonstrate the highest code of conduct by the board of directors and our associates. Our mission is to lead in the investment management industry and to build strong broad and on- going relationships and strategic alliances with our investors and partners. Our Objective is to build strong corporate identity, diversify portfolios, form strategic alliances and establish enduring relationships with our investors and partners.
  • 4. About Sharjah Sharjah is the third largest emirate with total land area around 2,600 sq km with diverse geography. This emirate experienced real progress during time period of H.H.Sheikh Sultan bin Mohammad Al Qassimi. The discovery of Mubarak oil field near island of Abu Musa in 1971 also played great role in progress and development of this emirate. Today Sharjah is known as cultural and sports capital of UAE. It is also world famous for its cricket stadiums and thrilling one day international cricket matches. Due to low crime rate and excellent accommodation facilities this city has made it world renowned and has drawn attention of sports lover across the globe. Sharjah displays a perfect blend of old and modern life style. This city possesses a modern and well equipped port at Khorfakkan that provide unmatched services and facilities for the ships don’t need to enter in Gulf. City has some of the world famous waterfronts hotel, green gardens, lake facing buildings and restaurants. Other attractions include modern and traditional souks that offer good bargains to buyers. Above all, this emirate has well maintained museums there you can even check 80 million old fossils. Sharjah also showed great potential in construction and property development projects. During recent year this emirate has been experiencing huge rise in demand of accommodation places including apartments and furnished apartments. This has also attracted local and foreign investors to invest in property market of Sharjah. Despite this fact that real estate Dubai is leading the property market of UAE, Sharjah also offers really exciting and promising investments opportunities in construction and property business. This emirate is a much economical place to relocate as compare to Dubai. This city has showed rapid progress in different sectors like construction and development. You can find numerous glittering skyscrapers along the costal line of this emirate. Sharjah is opening its property market to foreign investment for the first time as expatriates are granted the right to buy homes. Leases of up to 100 years will be granted as the emirate benefits from spillover property demand from neighbouring Dubai. For the first time in its history, the Sharjah government has passed a law enabling expatriates from any country in the world to buy property in the emirate providing they hold a UAE residence visa. Expatriates will be able to own property in the emirate on long leases but not land, government officials said . Investment will be restricted to new investment areas on the edge of the city centre. Initially only plots will be made available to sub-developers to build apartment and villas. The first new development to offer the long leases will be Tilal City, a 25 million square feet development on Emirates Road close to the Al Dhaid Interchange Officials said the new rules would create “new cluster cities” outside central Sharjah which would reduce traffic and congestion in the main city centre. This is a historic milestone for Sharjah. Traditionally, international investors have focused their attention on Dubai and Abu Dhabi, but this move will open up a new market, to investors residing in the UAE.
  • 5. Based on the number of gated community feasibility studies that Cluttons has been commissioned to undertake, in close proximity to Sharjah International Airport, we expect to see similar developments launched in the short to medium term. The current shortage of these types of communities is causing a real demand from families residing in Sharjah, but also from families who want to relocate from Dubai in search of affordability. The new rules are the latest move in attempts to open up Sharjah’s more reasonably priced real estate market to expatriates, taking advantage of interest from buyers no longer able to afford Dubai prices. Real estate rules in Sharjah had prevented anyone other than UAE nationals from owning real estate, but were first relaxed after the global financial crisis to allow Arabs from the GCC to buy homes. Education Growth in UAE Education regulators are anticipating hundreds of thousands of new students to be enrolled in private schools by 2020. With the number of private school students in the GCC expected to triple in the next seven years, regulators from Abu Dhabi and Dubai have cited the need for hundreds of new schools to accommodate the increase. By 2020 the number of students in private schools are expected to reach 280,000, which means an annual growth of 5 per cent The private education sector in Abu Dhabi caters to more than 60 per cent of the total student population in the emirate – a quarter of whom are Emirati – and the sector is growing across the UAE. Private education has witnessed the most growth with students, so there are investment opportunities in private education across the UAE. Dubai has also experienced growth, with a 7 per cent annual increase in student enrolments in private schools. If the trend continues, the number of students will jump from 225,000 to 360,000 by 2020. That is a 60 per cent increase from the existing student population. The UAE needs 110 new schools by 2020 and it is one of the highest growth areas, followed by higher education. The UAE’s private education market is about the same size as India’s and China’s combined. That’s just a sense of the scale of what we’re dealing with here. The current number of students in private education in the GCC is predicted to triple by 2020. The rest of the world is looking at the region with great interest. Western-branded higher education institutions in the country are growing by 15 per cent a year, with the UAE hosting 37 international branch campuses – the highest number in the world. According to a study, the UAE has become a preferential educational destination for students, ranking 15th in terms of quality of education in a World Economic Forum (WEF) list of 148 countries. Between 2007 and 2012, the number of primary school students in UAE private institutions rose from 1,897,000 to 2,654,000, a compound annual growth rate (CAGR) of 6.9 per cent. The number of students at UAE educational institutions, predominantly in Abu Dhabi and Dubai, are increasing
  • 6. partially due to families from other Middle East nations migrating due to instability in their home country. Private School Growth in Sharjah More than Dh1 billion has been invested in private education in Sharjah. The assistant director general at Sharjah Chamber of Commerce and Industry has said that there were 140 private schools worth Dh1.26bn. All investors in the private education sector are urged to turn to innovative ideas that would further improve the standard of education in the emirate. This is an excellent opportunity to have businessmen and educators interact and share ideas on the best way to boost education, and give a brighter future to the children. Canadian Private School A Canadian Private School curriculum follows the Alberta Program of Study in coordination with the UAE Ministry of Education. Alberta Education’s high quality standards of instruction suit the needs and requirements of UAE’s Ministry of Education regulations. Alberta Education strongly promotes trilingual education and thus responds to the demands of our multicultural, multilingual school. Canadian Private School grants Alberta high school diplomas to students based on a credit system. To complete senior high, students must be awarded 100 credits. Students are awarded credits for each course they complete with satisfactory results. In addition, Grade 12 students must write and pass diploma examinations in core subject areas to graduate. Diploma examinations are provincially administered and account for 50 percent of the students’ final grade in the course. Alberta’s High School diploma is recognized across North America and throughout the world. High school graduates have the opportunity to continue their education at Alberta’s fine post secondary institutions or to attend some of the most prestigious universities and colleges in the world. Alberta Program Subjects: English Language Arts, Mathematics, Science, English Social Studies, Physical Education, Art and Music, Health, Drama, Information and Communication Technology (ICT) and French. UAE Requirements: Arabic, Islamic Studies and Arabic Social Studies are taught in accordance to the UAE Ministry of Education specifications.
  • 7. Why Canadian Education The most important question any parent considering a school for their child would ask is this – what is so special about Canadian education? The answer is deceptively simple. The essential goal of the Canadian teacher in the Canadian school is to educate students so that they have learned to learn! That means that students become increasingly capable at using their developing academic and intellectual talents to analyze, synthesize and problem solve. Certainly facts are important but the ability to use knowledge gained and skills developed to deal with new school and life challenges is essential. In effect Canadian education teaches students to think and to apply their learning in effective ways to novel situations. It is this fundamental ability that makes students with a Canadian education so successful in post-secondary schools and in their adult life. There are, of course, other features of Canadian education worth acknowledging. Learning often takes place co-operatively and in activity-based ways. That means that the teacher provides students with information and certain skills and then challenges them to develop their learning further through related and increasingly demanding activities. Simply memorizing factual information and then doing nothing with it is a waste of student time and energy. Parent involvement in student learning is also very important. Parents are expected to talk to their sons and daughters on a daily basis about school. Where parents do not understand what the school is trying to accomplish or have a concern, they are expected to call and then visit the school to clear things up. It is often said that Canadian schools, do not just accept students – they enroll families! Student learning is always most effective when the home-school partnership is strong. Finally, Canadian education is about the whole child. Students are not simply empty vessels to be filled with facts and figures. They are unique individuals who are learning and developing every day as they move from childhood to adulthood. Canadian schools are concerned about each student’s physical, emotional and social development as well as their performance as learners. Teachers engage their students in a caring and supportive way – not as friends but as adults concerned about their total development. Canadian education has been judged internationally to be of the highest quality. The Canadian School in Sharjah now brings that educational quality to the students of Sharjah. Investment Opportunity The new Canadian School in Sharjah offers a full Canadian instructional curriculum managed by a very experienced Canadian Principal and delivered by Canadian trained, certificated and experienced teachers. Our student performance expectations, teaching materials, instructional strategies and student management practices are the same as those you will find in any Canadian school. We would be a Canadian school not just in name but in practice. Canadian School in Sharjah are proud to be the first Canadian school in Sharjah and are committed to providing an educational experience for each of our students which will challenge them on intellectual, social and personal levels. We expect much from our students and their families and will provide the demanding learning environment which supports those expectations.
  • 8. The Canadian School in Sharjah also appreciates that we are a school which has been welcomed into an Arabic country with a predominantly Muslim population. We have committed enthusiastically to provide students with Arabic Language and Islamic Studies programs of the highest quality delivered by certificated and experienced teachers who are respected members of the school’s academic staff. The student – parent – school partnership for learning is at the heart of Canadian School in Sharjah’s efforts as a school to nurture educational accomplishment. We will succeed based as much the strength of that partnership as on the strength of our instructional programming. This school is first of its kind offshore Canadian school in Sharjah, which allows the graduates to enter various Universities in Ontario, Canada, without having to do any entrance assessments. This is a school which will be known for its academic rigor, focus on each learner as a unique individual and its emphasis on student engagement in their own learning. Our students will come to understand the shared responsibility we all have for the further development of a community of nations tied together by a commitment to tolerance, justice and equality of opportunity. We will graduate more than educated young people – we will graduate young people well-prepared make a difference in our challenged world. The Canadian School of Sharjah is surrounded by thousands of residential areas which makes it a very demanding and appealing school within this community. It is at a very close proximity to Sharjah Airport and Sharjah National Park and is easily accessible through various highways including Al Dhaid Road, Sheikh Mohammad bin Zayed Road and Emirates Road.
  • 10. Plot Summary Phase 1 Phase 2 Location/Units Built up Area Built up Area Sq.mt Sq.ft Sq.mt Sq.ft Ground Floor 5750.79 61,901.50 1623.94 17,480.09 First Floor 5118.94 55,100.27 1542.46 16603.04Roof Floor 274.19 2951.38 Sub Station Area 73.15 787.39 Gate Entrance 31.92 343.59 Guard Room 29.7 319.69 Total 11278.69 121403.8 3166.4 34083.13 Class Rooms 32 16 Plot Area 17206.15 185,207 Sq.mt Sq.ft Canadian School in Sharjah Nos Type Area in sq.mt 32 Classroom 1881.6 1 Biology Lab 64.8 1 Chemistry Lab 54.4 1 Physics Lab 54.4 1 Computer Lab 65.6 1 Library Hall 104.4 1 Computer Room 65.6 4 Internal Hall 1038.96 66 W/C & Toilets 188.76 15 Admin Rooms 765 3 Teacher Rooms 256 2 Clinic 129.48 2 Cafeteria 295.07
  • 11. Feasibility Report Description Year0 Year1 Year2 Year3 Year4 Year5 Revenue 14,625,000 21,611,500 33,150,000 42,409,300 48,498,400 Management Fees Rent Fees Net Revenues 14,625,000 21,611,500 33,150,000 42,409,300 48,498,400 COGS (3,300,000) (8,600,400) (9,689,040) (11,579,064) (13,518,178) (16,031,881) Gross Profit (3,300,000) 6,024,600 11,922,460 21,570,936 28,891,122 32,466,519 Gross Margin 41% 55% 65% 68% 67% SG&A - (2,765,800) (4,034,723) (5,512,560) (6,709,374) (7,716,661) EBITDA (3,300,000) 3,258,800 7,887,738 16,058,376 22,181,748 24,749,858 EBITDA Margin 22% 36% 48% 52% 51% Depreciation (171,429) (171,429) (171,429) (171,429) (171,429) Amortization - - - - - - EBIT (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430 EBIT Margin 21% 36% 48% 52% 51% Interest income - - - - - - Provisions - - - - - - FX gains/losses - - - - - - Other income - - - - - - Other expenses - - - - - - - Net Profit (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430 NPBT Margin 21% 36% 48% 52% 51% NPAT (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430 NPAT Margin 21% 36% 48% 52% 51% Canadian School in Sharjah Profit & Loss Statment
  • 12. Description Year0 Year1 Year2 Year3 Year4 Year5 Assets: Current Assets: Cash & equivalents 550,000 4,797,630 12,553,771 28,413,226 50,519,832 75,467,976 Receivables (net) 731,250 1,080,575 1,657,500 2,120,465 2,424,920 Inventory Projects in progress Due from sister companies Due from affliate companies Receivables & other debit balances - - - - - - Total Current Assets 550,000 5,528,880 13,634,346 30,070,726 52,640,297 77,892,896 Gross Fixed Assets 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Less: Accumulated depreciation (171,429) (342,857) (514,286) (685,714) (857,143) Net fixed assets 1,200,000 1,028,571 857,143 685,714 514,286 342,857 Long-term investments Projects under construction - - - - - Other long-term assets (net) - TOTAL ASSETS 1,750,000 6,557,451 14,491,488 30,756,441 53,154,582 78,235,753 Liabilities: Current Liabilities: Creditors & other credit balances 1,720,080 1,937,808 2,315,813 2,703,636 3,206,376 Deferred tax liability Provisions - - - - - - Total Current Liabilities - 1,720,080 1,937,808 2,315,813 2,703,636 3,206,376 LT Debt - - - - - - T. Long Term Liabilities - - - - - - Total Liablilties - 1,720,080 1,937,808 2,315,813 2,703,636 3,206,376 Shareholders Equity: Paid in Capital 5,050,000 5,050,000 5,050,000 5,050,000 5,050,000 5,050,000 Reserves and Retained Earnings (3,300,000) (212,629) 7,503,680 23,390,628 45,400,947 69,979,377 Total Stockholders' Equity 1,750,000 4,837,371 12,553,680 28,440,628 50,450,947 75,029,377 TOTAL LIABILITIES & EQUITY 1,750,000 6,557,451 14,491,488 30,756,441 53,154,582 78,235,753 Checker - - - - - - Balance Sheet Statement
  • 13. Description Year0 Year1 Year2 Year3 Year4 Year5 Net income (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430 Add: Depreciation - 171,429 171,429 171,429 171,429 171,429 Settlements - - - - - Add: Provisions +/- change in receivables - (731,250) (349,325) (576,925) (462,965) (304,455) +/- change in inventory - - - - - - +/- change in projects in progress - - - - - - +/- change in due from sister companies - - - - - - +/- change in due from affiliate companies - - - - - - +/- change in other debit balances - - - - - - +/- change in creditors & other credit balances - 1,720,080 217,728 378,005 387,823 502,741 +/- change in provisions - - - - - - +/- change in deferred tax liability - - - - - - +/- change in woking capital - 988,830 (131,597) (198,920) (75,142) 198,286 Cash Flow from Operations (3,300,000) 4,247,630 7,756,141 15,859,456 22,106,605 24,948,144 Purchase of fixed assets (1,200,000) - - - - - +/- change in long-term investments - - - - - - +/- change in projects under construction - - - - - - +/- change in other long-term assets - - - - - - Cash Flow from Investing Activities (1,200,000) - - - - - +/- change in bank LT Debt - - - - - - +/- change in Paid-in capital - - - - - - +/- change in Share Premium 5,050,000 - - - - - Cash Flow from Financing Activities 5,050,000 - - - - - Net Cash Flow 550,000 4,247,630 7,756,141 15,859,456 22,106,605 24,948,144 Cash & equivalents at beg. of year 550,000 4,797,630 12,553,771 28,413,226 50,519,832 Cash & equivalents at end of year 550,000 4,797,630 12,553,771 28,413,226 50,519,832 75,467,976 Cash & Cash eq at end 550,000 4,797,630 12,553,771 28,413,226 50,519,832 75,467,976 Cash Flow Statement Description Year0 Year1 Year2 Year3 Year4 Year5 EBIT (1-t) (3,300,000) 3,087,371 7,716,309 15,886,947 22,010,319 24,578,430 Add: Depreciation - 171,429 171,429 171,429 171,429 171,429 Less: Increase in working capital requirements - 988,830 (131,597) (198,920) (75,142) 198,286 Less: Capital expenditure (1,200,000) - - - - - Free Cash Flow to Firm (4,500,000) 4,247,630 7,756,141 15,859,456 22,106,605 24,948,144 IRR 160.07% Discounted FCF: WACC 16.00% Years 0 1 2 3 4 5 Discounted Factor 1.00 0.862 0.743 0.641 0.552 0.476 Discounted Net Prsent Value (4,500,000) 3,661,750 5,764,076 10,160,482 12,209,281 11,878,136 Acc. Net Present Value (4,500,000) (838,250) 4,925,826 15,086,308 27,295,589 39,173,725 Discounted Payback Period 0 Years 15 Months Free Cash Flow Item Y1 Y2 Y3 Y4 Y5 No.of Students 250 375 575 720 800 Avg.School Fees /Student 48,000 48,000 48,000 49,440 50,923 Total School Fees 12,000,000 18,000,000 27,600,000 35,596,800 40,738,400 Other Revenues 2,625,000 3,611,500 5,550,000 6,812,500 7,760,000 Total Revenues 14,625,000 21,611,500 33,150,000 42,409,300 48,498,400 Expected Revenues AED
  • 14. Item Y1 Y2 Y3 Y4 Y5 Operation Expenses: Salaries & Related (2,480,000) (3,120,000) (3,963,000) (5,420,204) (7,069,993) permits/Licenses (70,000) (90,000) (100,000) (106,000) (111,000) Traning Expenses (156,000) (168,000) (184,000) (202,400) (202,400) Office Supplies (24,000) (38,400) (61,440) (86,016) (103,219) Uniform (50,000) (90,000) (148,400) (180,000) (205,000) transportation Cost (300,000) (450,000) (630,000) (720,000) (820,000) Books (300,000) (400,000) (540,000) (720,000) (820,000) Telephone/Internet (20,400) (32,640) (52,224) (83,558) (100,269) Rent (5,000,000) (5,000,000) (5,500,000) (5,500,000) (6,000,000) Management Fees (200,000) (300,000) (400,000) (500,000) (600,000) Total Operation Expenses (8,600,400) (9,689,040) (11,579,064) (13,518,178) (16,031,881) Net Profit Before tax 6,024,600 11,922,460 21,570,936 28,891,122 32,466,519 Taxes Net profit After tax 6,024,600 11,922,460 21,570,936 28,891,122 32,466,519 Net Profit After Operating Expenses AED Item Year 1 Year 2 Year 3 Year 4 Year 5 Administrative Expenses (1,023,750) (1,512,805) (2,320,500) (2,968,651) (3,394,888) Building Insurance (84,000) (144,000) (187,200) (234,000) (292,500) Water /Energy (370,000) (407,000) (447,000) (470,085) (493,589) Professional Fees (20,400) (36,000) (39,600) (43,560) (47,916) Memberships (6,000) (8,400) (9,660) (11,109) (12,775) Maintenance (73,125) (162,086) (248,625) (381,684) (436,486) advertising & Marketing (511,875) (648,345) (828,750) (848,186) (969,968) Employee Accommodation (168,000) (204,000) (285,600) (371,280) (445,536) Employee Reimbursement (168,000) (240,000) (312,000) (390,000) (487,500) Bank Expenses (14,400) (30,000) (33,000) (37,950) (41,745) Provision for Replacment (146,250) (162,086) (248,625) (318,070) (363,738) other operation expenses (180,000) (480,000) (552,000) (634,800) (730,020) Total (2,765,800) (4,034,723) (5,512,560) (6,709,374) (7,716,661) Selling, General & Admin Expenses Fixed Cost (9,614,950) (11,404,245) (14,000,224) (16,589,528) (19,639,761) Variable Cost (1,751,250.00) (2,319,517.50) (3,091,400.00) (3,638,024.45) (4,108,780.60) Variable Cost per Student (7,005.00) (6,185.38) (5,376.35) (5,052.81) (5,135.98) Total Revenues per Student 58,500 57,631 57,652 58,902 60,623 Break Even (187) (222) (268) (308) (354) Net Present Value AED 38,167,207 Stake on Offer (25%) AED 9,541,802