CQU buys out its partner

CENTRAL Queensland University has extracted itself from its joint venture with Sydney-based Global Campus Management for a what is believed to be an eight-figure sum.

CENTRAL Queensland University has extracted itself from its joint venture with Sydney-based Global Campus Management for a what is believed to be an eight-figure sum.

Under the terms of the deal, foreshadowed in the HES in November, CQU has acquired the joint venture company C-Management Services from its partner Global Campus Management, chaired by education entrepreneur Mark Skinner. Last year CMS handled overseas student operations valued at about $100million.

Vice-chancellor John Rickard said in November that the university and Mr Skinner had "been going in different directions and we have agreed it's better for one party to buy out the other. We don't want the same things any more."

The termination comes after a 2006 Australian Universities Quality Agency audit found the formal arrangements between the partners required "considerable attention" and recommended the CQU "restructure the governance arrangements for its partnership".

Key CMS management and staff are to be retained. CQU has about 6000 international students at its Melbourne, Sydney, Brisbane and Gold Coast campuses. In 2006 this was the highest proportion of international students in the country.

As a wholly owned subsidiary of CQU, CMS will continue to operate as a commercial entity but it and the university will develop new management, governance and academic structures and protocols, including a restructured CMS board with independent directors.

Professor Rickard said in November that between $70 million and $80 million in revenue had flowed to the university from CMS operations over the past three years.