Carey Grammar purchases Kalimna mansion from struggling Preshil Secondary School in Kew

One of Melbourne’s wealthiest private schools has snatched up an iconic Kew campus from the struggling school next door, marking a “transformational moment” for Preshil amid its financial crisis.

Carey Grammar has purchased the Kalimna mansion on Sackville St, currently owned by alternate independent school Preshil.

One of Melbourne’s wealthiest private schools has bought the iconic campus of the struggling school next door in leafy Kew in a firesale purchase.

Carey Grammar has announced the purchase of the Kalimna mansion on Sackville St, pictured above, currently owned by alternate independent school Preshil.

As the Herald Sun revealed last month, financial records show Preshil, a once-thriving school, made a loss in 2022 of $2.3m, only attracting $8.9m in income and posting $11.3m in expenses.

The expenses include a Supreme Court payment of $2.1m to a sexual abuse survivor in 2022, forcing the school to take out a new bank loan in the same year for $2.2m.

As a result of declining enrolments and financial pressures, the school has already tried to sell a 594 sqm site at 1 The Pines, Kew.

Preshil Secondary School in Kew made a loss of $2.3m in 2022. Picture: Mark Stewart

Carey Grammar principal Jonathan Walter on Monday confirmed his school had bought one of Preshil’s signature campuses, the grand Victorian Kalimna mansion holding offices, music studios, a half-basketball court, student common rooms and classrooms.

As a result of the Kalimna sale, The Pines campus will remain owned by Preshil.

The 2400 sqm site in one of Kew’s most significant avenues was last sold 33 years ago for $2m and is now worth an estimated $20m.

Carey Grammar, which has more than 2500 students and made a $8m surplus in 2022, will rent the campus back to Preshil for the next 42 months “to allow both schools to plan for a smooth transition to their new occupancy arrangements”.

Carey Grammar has purchased the Kalimna mansion on Sackville St, currently owned by alternate independent school Preshil. Picture: David Crosling

Mr Walter said Carey Grammar will “benefit enormously from the acquisition of this site”.

“The location and potential of the property complements and supports Carey’s strategic vision and provides an outstanding opportunity to facilitate the current and future educational and wellbeing needs of our students,” he said.

He thanked Preshil for “negotiating a successful outcome for both communities”.

Mr Walter said Preshil is “looking to consolidate and enhance operations on other existing sites owned by the school”.

Preshil principal Aaron Mackinnon said the sale will provide Preshil with a “generational opportunity to fund major capital works projects that will ensure our students will have access to the state of the art facilities, beautiful landscaped gardens and recreational spaces and technology that best accommodates their learning and growth”.

“This is a transformational moment for the school as we will be placed in a strong financial position that will underpin the long term sustainability and success of the school in the context of our new Mission – to foster a community that supports students to forge a path for themselves, informed by their talents and passions,” he said.