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Chinese property investor takes control of Gabbitas Education, tutor to Britain’s royal family Gabbitas, the 147-year-old Londonbased educational consultancy that has famously tutored members of Britain’s royal family, has been acquired by a Chinese property magnate. This publication revealed that Calvin Ho, a Hong Kong-based property investor of Chinese origin, acquired Gabbitas in June from its former owner Shaw Trust, one of the UK’s largest charities. Corporate filings with Companies House show that Ho was appointed as a director on 9 June, when the role of Vanessa Miner, Gabbitas’ former managing director, was terminated. The roles of Jacqueline Oughton (director) and Stephen King (secretary) were terminated on the same date.
Oughton is Shaw Trust’s chief operating officer and King is its chief financial officer. Shaw Trust, whose mission is to help disabled and disadvantaged people into employment, took control of Gabbitas in November 2017, when it acquired Prospects Group, its former parent. Oughton confirmed the sale of Gabbitas to this publication and noted that Miner had been employed under a two-year contract. Following a strategic review of Gabbitas that was initiated last year, Shaw Trust decided that “Gabbitas did not fit with the long-term objectives” of the charity, said Oughton. She explained that a management buyout spearheaded by Miner and
bankrolled by Ho was considered but in the end was dropped in favour of a “straight sale” to Ho. “Had it fitted with Shaw Trust’s values and objectives, we would’ve retained it [Gabbitas],” said Oughton. “It’s very well-renowned and has a huge future.” The sale illustrates a deepening trend in which Chinese investors and operators are consolidating parts of the UK private education market. Three British independent schools – Wisbech Grammar, Heathfield Knoll and Abbots Bromley – were acquired this year by Chinese investors, while in April a cash-strapped private university was resuscitated by China Education Group.
Some 17 British private schools are now owned by Chinese entities, according to Venture Education, a China-based consultancy. Little is known about Ho, 39, but the property investor is understood to have had a relationship with Gabbitas for several years prior to acquiring the company. It is understood that Ho’s organisation provided office space to Gabbitas in China. The price paid by Ho for Gabbitas is unclear. Gabbitas had not responded to a series of questions from EducationInvestor Global at the time of publication. (Full story available online.)
British independent school hires advisors to run auction The owners of Park School in Bournemouth, England, have hired an accountancy firm to explore a sale of the business amid the coronavirus crisis, which estimates suggest could wipe out hundreds of British private schools. This publication learnt that the four directors of Park School, which is privately owned, have mandated corporate financiers from Mazars Group, one of the UK’s top-10 accountancy firms, to sell the school. According to sources, Park School, which has around 380 day pupils aged two to 11, records annual EBITDA of around £1 million. Filings with Companies House – which do not include a profit and loss account – showed that in the year ended 31 August 2019, Park School had total equity of £1.45 million. A sale of the school is being explored during the most challenging period for private schools in recent memory, as the Covid-19 pandemic, which has already forced more
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Bournemouth, England
than 10 independent schools to close, could wipe out as many as 180, according to consultancy EY-Parthenon. It is understood, however, that Park School remains profitable – although the impact of the coronavirus crisis on its enrolments could not be determined. One source told this publication that “there will definitely be interest
in it” as “it seems to be doing fairly well” and is situated in a “decent location near the coast”. Park School, which is led by headteacher Melanie Dowler, is not reviewed by the Good Schools Guide, but its most recent compliance report from 2018 by the Independent Schools Inspectorate (ISI) found that “results were well above the national average for maintained schools”.
According to the ISI, Park School is “run as a limited company with four directors, who are known as the school governors”. Andrew Main is listed on Park School’s website as chairman of the board of governors. Park School could draw interest from Chinese investors and operators, which collectively control 17 British private schools, according to China-based consultancy Venture Education. Last year, Foshan-headquartered bilingual school operator Bright Scholar acquired CATS Colleges and two British independent schools, after it bought Bournemouth Collegiate School in 2018. By car, Bournemouth Collegiate School is less than 10 minutes from Park School. Park School was founded in 1928 in Portsmouth, but moved to its current location, one mile north of Bournemouth town centre, in 1939. A spokesperson for Mazars Group declined to comment.
EducationInvestor Global • July/August 2020
