UOW report reveals $7.7m loss in sale of Marketview, Weerona

Leading the downturn was a decline in student tuition revenue, particular from domestic students and offshore international students.

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The Morrison government's Job Ready Graduates Scheme also negatively impacted the university's bottom line.

UOW followed its peers in the higher education sector, with all NSW universities reporting a loss in 2022, besides the University of Sydney, which posted a $298 million surplus, and the Australian Catholic University, which posted a $200,000 surplus.

UOW's report also reveals that the two student accommodation residences sold last year were let go in a fire sale.

UOW sold its Marketview and Weerona residences as demand for accommodation dropped off during the pandemic and the university sought cash to get it through an uncertain period.

The two residences were listed as assets held for sale, valued at $25,68,000 in the 2021 report.

The 2022 report reveals the university made a $7.7 million loss on the sale of property in the 2022 year.

Property records show Weerona was bought for $22 million in October 2021 by development firm Realta Enterprises, led by Wollongong businessman Pasquale Lucchitti and owned by him and his family.

It was not the only asset picked up by Mr Lucchitti in 2021, with the family business also picking up the Flinders Motel in Wollongong for $12 million, and the Bulli Woolworths site for $36 million.

A sale price for Marketview has not yet been disclosed.

A UOW spokesperson said the university go the best deal it could.

"The properties were subject to an open commercial sale process and thus captured the full potential value of the sites at the time of sale as determined by the market."

In its audit of the university's finances, the NSW Auditor General noted the university banked $25 million in franking credits from the sale of its shares in an ASX-listed educational company, IDP Education, set up by universities around Australia.

The report notes that the tax office is yet to make a final decision, but its initial position is that universities are not eligible to receive franking credits, in part due to universities not paying income tax on revenue.

"There is a risk the receivable that is currently booked may not be recoverable," The Auditor General states.

"UOW is working with the sector and the Australian Taxation Office to resolve questions the ATO has in relation to the transaction," the UOW spokesperson said.

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