Genazzano College Sells Kew Property to Tackle Debt Amidst Enrolment Decline
Genazzano FCJ College, an older Catholic girls' school in Melbourne, is selling a property in Kew to address its significant debt. The college has faced a continuous decline in enrolments for over a decade and has operated at a deficit for nine of the past twelve years, spanning from 2013 to 2024.
Financial Pressures Highlighted
The school's 2024 annual report indicates substantial financial pressure, explicitly stating that the sale of a neighboring property is essential to repay part of a multi-million-dollar debt and ensure the college's long-term viability.
Auditors noted that failure to sell the land could raise significant doubt about the college's ability to continue as a going concern.
The report, accessible on the Australian Charities and Not-for-Profits Commission (ACNC) website, details the college's financial structure, including a $6.5 million loan from the Catholic Development Fund, which is due in September 2034. Additionally, the school maintains a $2 million overdraft to manage short-term cash needs. Directors plan to use the proceeds from the upcoming land sale specifically to reduce this long-term debt with the CDF.
Details of the Property Sale
The property slated for sale is a 628-square meter block located at 12 Moonbria Avenue. It was formally subdivided from the main school property in January and is currently listed for sale with an asking price between $2.1 million and $2.3 million. A home that previously stood on the land was demolished in 2019.
A college spokeswoman clarified that the Moonbria block became surplus property after the former convent was transferred from the FCJ Sisters in 2023. The spokeswoman affirmed that the sale of the Moonbria Avenue land is specifically intended to resolve the 'going-concern' issue flagged by auditors.
Challenges and College's Outlook
While the 2024 annual report to parents did not explicitly mention the property sale plan, it did acknowledge the school's financial challenges. These were attributed to broader demographic shifts, rising operational costs, and increased competition within the education sector.
Enrolments at Genazzano FCJ College have seen a steady decline, falling from 1095 students in 2014 to 680 last year. The spokeswoman attributed this decrease to various factors impacting the affordability of private education, including cost-of-living pressures, ongoing demographic changes, and recent payroll tax adjustments. She acknowledged the challenging environment currently faced by independent schools.
Despite these challenges, the spokeswoman stated that the college remains financially sound and has not reduced any programs. The 2024 annual report also noted a $62,569 surplus for the year and $9,729,344 in fees allocated for school operations.