Hillcrest Christian College on Gold Coast sells reading program for more than $1M to Hong Kong company and Gold Coast Hub

A Gold Coast Christian school under investigation over bullying claims has made a tidy profit after selling off a major asset.

Hillcrest Christian College has sold its wholly-owned subsidiary I Love Reading for more than $1 million.

A GOLD Coast Christian school under investigation over bullying claims and loans to its wholly-owned reading company has sold its literacy program for more than $1 million.

Reedy Creek-based Hillcrest Christian College has sold I Love Reading (ILR) — a literacy program designed to facilitate the rapid learning of reading English — to Hong Kong company New Wave Capital and 42 Ventures, which is the investment arm of the Gold Coast Innovation Hub in Robina.

Gold Coast Innovation Hub chairman Danny Maher said the sale of ILR will enable the further development of its software to branch out into other languages including French and Mandarin.

Hillcrest was rocked in May by allegations of staff bullying after two managers were stood down amid claims of bullying against principal Jeff Davis.

Hillcrest Christian College principal Jeff Davis.

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The sale comes as Hillcrest faces an investigation by the State Government’s Non-State School Administration Board after complaints about the school’s operations, including its relationship with ILR.

The complaints include concerns about more than $600,000 in loans to ILR, a company directed by Mr Davis and two of the college’s board members, deposed chairman Len Oldfield and current Hillcrest board co-chair Jame Lewis.

Concerns were also raised about Hillcrest funds being used to pay rent on an Adelaide property leased to the man behind a literacy program now run by I Love Reading.

ILR was set up in 2017 with the aim of selling the phonetic-based literacy program to other schools.

Hillcrest’s company I Love Reading has attracted controversy following $600,000 in loans to the reading program, which has principal Jeff Davis as a director as well as deposed chairman Len Oldfield and current Hillcrest board co-chair Jame Lewis.

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Hillcrest’s annual report notes that the principal and interest on all three ILR loans of $200,000 remain outstanding.

Accounts reveal the college’s revenue and profit fell last year as expenses increased to close to $3 million.

Mr Maher said ILR caught the eye of investors because of its commercial potential.

“I Love Reading is a proven, homegrown product, that has delivered outstanding results for schoolchildren and could change the lives of millions of people who have the desire to learn English,” he said.

“I Love Reading as a commercial entity requires restructuring and significant new investment in ongoing software development, marketing and establishing international networks, to reach its potential.”

Mr Lewis said Hillcrest received a number of offers for ILR prior to its sale.

I Love Reading will continue to be available to students and teachers at Hillcrest and other schools currently using the program.

“We developed the concept and have demonstrated its potential, and teachers and students alike have praised the value of the program,” he said.

“But we recognise the time is right for ILR to grow commercially and that requires considerable time and investment that is beyond the core business of the College.”