A Goldman Sachs unit has acquired the student housing facilities of a private university in north India at an enterprise value of ₹900 crore (about $120 million), said two people aware of the development.
Good Host Spaces, a student housing company majority-owned by Goldman Sachs, recently took over the land and hostel facilities of O.P. Jindal Global University (JGU) based in Sonipat, Haryana, said the two people cited above declining to be named. The university offers courses in subjects such as law, liberal arts and international affairs.
Good Host Spaces is owned 75% by Goldman and the rest by mortgage financier Housing Development Finance Corp.
The investment reflects the Wall Street investment bank’s belief that the turmoil caused by the coronavirus pandemic will subside and students will start returning to physical classrooms. So far, lockdowns due to pandemic has disrupted school and college calendars and sparked a major boost in online education. It has also ignited debates about on-campus learning and fees charged by colleges and universities with education shifting online.
Nimesh Grover, chief executive at Good Host Spaces, said that he does not expect the pandemic to have a significant impact on physical education in colleges.
“While online can be a temporary fix, it cannot be a permanent solution. There will be a market for online education. For example, working professionals or people who have affordability issues or are unable to devote time, will opt for online. But, otherwise, it won’t have a major impact,” he said.
“In the US, you have had online education for the longest time and it is still considered to be an inferior product to physical education,” he said.
He declined to comment on the JGU transaction.
Confirming the deal, a spokesperson for the university said Good Host Spaces will manage non-academic services such as student housing, dining services and laundry facility.
