Lincoln may look to sell off some of its farmland
Cash-strapped Lincoln University is considering private investment and selling off assets to raise the millions of dollars it needs to balance its books.
Despite restructuring in 2013 and 2014 that saw more than 100 jobs axed and plans to cut ‘‘unpopular’’ courses, vicechancellor Prof Robin Pollard said more needed to be done to improve Lincoln’s fortunes.
Some of the thousands of hectares of farmland it owns could be sold.
‘‘The first imperative is to turn round the university’s financial outcomes and we need to do that fast,’’ Pollard said.
Student numbers dropped after the earthquakes.
The university made a $6 million loss last year, excluding insurance proceeds.
Its finances were now being monitored by the Tertiary Education Commission, which stipulated certain fiscal standards.
Pollard estimated $7m would be needed to meet the requirements.
The university had a ‘‘high value of assets on its balance sheet’’, including ‘‘thousands’’ of hectares of farmland, he said.
Some of it could be leased or sold, he said, but land used for research purposes would remain untouched.
‘‘We need to understand those assets and identify what we can do to better utilise the money that’s tied up [in] them.’’
Pollard said private investment would also be considered, but was not a priority.
‘‘There are universities that have private operations on their campus, including for catering and accommodation.’’
He hoped to bring in consultants to help implement changes.
The last of the university’s deputy vice-chancellors had recently resigned, he said, which could free up money to pay for them.
‘‘Some of the changes that are needed are commercial changes,’’ he said.
Land transfers, for example, would require particular expertise.
‘‘We also probably need financial assistance so that Lincoln can demonstrate it’s on the right path.’’
A planned research hub would give Lincoln ‘‘a new future’’, with a $107m investment from the Government.
Pollard said it would grow student numbers, particularly at post-graduate level.
He stressed no decisions had been made.
Lincoln University last month received a $220,000 report exploring future options.
Its contents have not been made public, but Pollard said it considered everything from merger to closure.
‘‘If Lincoln was closed I think it would be disastrous for Canterbury.’’
PGG Wrightson Selwyn rural real estate agent Wilton Atkins said if Lincoln was looking to sell dairy farm land, it might not be the best time. ‘‘It’s not very hot.’’ Farms with access to water and a good nutrient level would be able to find a buyer, he said, and the market could swing if the milk payout or other factors improved.