In a major coup, Axiom Properties Limited has formed a strategic partnership with a Chinese university city, opening up education and student accommodation sector opportunities in Australia and the Asia Pacific Region.
The partnership with Oriental University Holdings (OUC), which operates Oriental University City campus accommodating 10 education institutions and hosting more than 19,000 students just 40km from Beijing, will help Adelaide-based Axiom capitalise on the expanding domestic and international education markets.
In Australia, international education enrolments to the end of March totalled 413,032, up 11.5 per cent compared with the same time last year.
The news follows Axiom’s announcement in May that it had established a new division to investigate opportunities in the student accommodation sector.
OUC Chairman Mr Chew Hua Seng said OUC was delighted to have the opportunity to invest in Axiom.
“With our combined knowledge and expertise, we are confident to expand our student accommodation business into Australia, particularly in Adelaide where Axiom has a big presence and create value for both our shareholders,” he said.
Axiom Chairman Mr Ian Laurance AM said the partnership with a substantial international corporation was a quantum leap for Axiom.
“We look forward to pursuing opportunities across Australia and other regions with our new equity stakeholder and partner,” he said.
Axiom’s property investments include the Churchill Centre, a major sub regional shopping centre in Adelaide which is home to 56 stores including Costco and SA’s first Coles superstore, with German retailer Aldi secured to anchor stage two of the development. The centre’s north and south precincts extend over 50,000 sq m.
The company is also developing 50 hectares of rural land into a residential subdivision in one of South Australia’s fastest growing regions, Mount Barker, which will provide in excess of 500 allotments over the next five to ten years. Axiom also retains ownership of 1.8 hectares of land on the fringe of the Adelaide CBD, Worldpark, which is a campus style green office business precinct in Keswick.
Recently completed projects include a landmark 30,000 sq m office complex in St George’s Terrace, Perth and Home HQ Gepps X in Adelaide, a major 62,000 sq m large format retail centre.
OUC owns and leases education and other facilities including teaching and accommodation buildings in China. Its major shareholder is Raffles Education Corporation Limited (REC), the largest premier private education provider, owner and manager of education assets and facilities and education-linked real estate investor and developer in the Asia and Asia Pacific Region. REC provides a full spectrum of education services through a network of 31 colleges and universities in 29 cities across 12 countries globally.
Under the partnership deal, OUC will purchase a 19.9 per cent stake in Axiom and its Chief Executive Officer and Executive Director, Mr Liu Ying Chun, has been offered a position on the Axiom board.
Axiom reported a profit of $4.237 million for the half year to 31 December 2014.
About Axiom Properties Ltd
Axiom Properties Ltd is a property development and investment business focused on developing and delivering quality property solutions. Axiom’s principal objective is to create long term value for shareholders through creating a well-respected property development and investment company that consistently delivers above industry returns on capital. Details: www.axiompl.com.au