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OK, don’t take our word for it,
below are comments from some of our clients

I was amazed to see there is an organisation that can look after all our 9b
and campus compliancerequirements across the country. No need to worry about this any more!
Gwynne Hew
EI has established themselves as an industry leader in the design of compliant building fit outs,
that are efficient and will save their clients time, stress and genuine money.
As a 9B and building compliance specialist, I highly recommend Chris
and his team for any organisation engaged in tertiary education”
Rod Camm,
Ex CEO ACEPT DIrector MMACDOR Consulting
Education Interiors were able to look after the entire project as client side consultants
and project managersfrom the selection of the property to the handover
of the occupation certificate for class 9b. We were able to reduce our project costs by over 50%!”
Dr M Jasim Uddin
AELC
We engaged EI to undertake the initial property evaluation for the new city campus and they
were able to give us a highlevel of confidence that they would get our 9b approval from council,
which we did! They helped increase our students numbers by 30%!”
Ken Yu
UPC

Occupancy Uplift Case Studies

Following are some real examples of the impact of engaging Education Interiorswhere we can implement client specific strategies that made a major positive difference to their bottom ine and profitability as an organisation.

There are multiple benefits in the implementation of an Occupancy Uplift which are not always as obvious as others.

The additional revenue is easy to identify and even though it is “projected” revenue, it provides the college significant additional CRICOS capacity and growth in the same fixed lease area.

Staging the implementation can be a real advantage to manage cash flow, even if the strategy is not implemented straight away, the fact that the potential revenue for the campus has been increased, this projected revenue sit’s on the balance sheet and increase’s the asset value of the organisation.

When the growth of the college is such that the capacity is starting to be reached, the uplift can be implemented giving the organisation continuing growth in the same space and moving the projected revenue on the balance sheet to cash flow on the P&L.

The fact that you don’t need to lease extra space means you avoid the additional leasing costs which are on going for the length of the new lease and the additional capital costs of the new fit out. This helps to reduce fixed lease costs and increase the profitability of the organisation.

One of the key benefits that often is lost in the conversation of an occupancy uplift for a new or existing premises is “De-Risking” the organisations growth. If one leased the extra space, committed to a lease and fitted out, if there was a down turn in the market, yourstudent numbers and revenue may reduce but you are still left holding the extra fixed lease costs which negatively impacts on the probability of the organisation.

Case Study 1: Higher Ed Provider (Sydney)

Increased Revenue Potential:

Increase student numbers by 300 students per shift
Increase of campus revenue @ $420.00 gross per student per week    (average) = $126,000.00 per week
Multiply by 2 shifts per week = $252,000.00 increase revenue potential per week
Multiply by 50 weeks per year = $12,600,000.00 additional income    potential from the same fixed lease costs (re-accruing per year).
  

Reduced Fixed Lease Cost

To achieve an additional 300 students at anyone time and the associated revenue in the standard approach, you would need to lease, on average, an additional 1,200m2. If youcould find this space in Surry Hills (very difficult at the moment) the lease cost would be currently approx. $600.00 + GST per square meter adding an additional $720,000.00 to the annual lease commitment for the organisationTherefore, the extra cost to the business to achieve the same potential increase in revenuewould be:

$720,000.00 + GST lease cost (recurring PA) x 5 year lease = $3,600,000.00 + GST.
Legal fees and Bond?
Fitout cost for new tenancy based on $800.00 +GST per square meter = $960,000.00 + GST

Case Study 2: Higher Ed, VET & ELICOS Provider (Melbourne)

Increased Revenue Potential:

Increase student numbers by 450 students per shift over 3 floors
Increase of campus revenue @ $200.00 gross per student per week (average)
Multiply by 3 shifts per week = $270,000.00 increase revenue potential per week
Multiply by 50 weeks per year = $13,500,000.00 additional income potential from the same fixed lease cost
  

Increased Revenue Potential:

To achieve an additional 450 students at anyone time and the associated revenue in the standard approach, you would need to lease, on average, an additional 1,800m2. If you could find this space in Melbourne (quite difficult at the moment) the lease cost would be currently approx. $500.00 + GST per square meter adding an additional $900,000.00 to the annual lease commitment for the organisation.

Therefore, the extra cost to the business to achieve the same potential increase in revenue would be:

$900,000.00 + GST lease cost (recurring PA) x 5 year lease = $4,500,000.00 + GST.
Legal fees and Bond?
Fitout cost for new tenancy based on $1,100.00 +GST per square meter = $1,980,000.00 + GST

Case Study 3: ELICOS & VET Provider (Melb)

Increased Revenue Potential:

Increase student numbers by 120 students per shift
Increase of campus revenue @ $210.00 gross per student per week (average) = $25,200.00 per week
Multiply by 2 shifts per week = $50,400.00 increase revenue potential per week
Multiply by 50 weeks per year = $2,520,000.00 additional income potential from the same fixed lease cost.
  

Increased Revenue Potential:

To achieve an additional 120 students at anyone time and the associated revenue in the standard approach, you would need to lease, on average, an additional 480m2. If you could find this space in Melbourne (quite difficult at the moment) the cost m2 to lease would be at least $500.00 + GST per m2 adding an additional $240,000.00 to the annual lease commitment for the organisation.

Therefore, the extra cost to the business to achieve the same potential increase in revenue would be:

$240,000.00 + GST lease cost (recurring PA) x 5 year lease = $1,200,000.00 + GST.
Legal fees and Bond?
Fitout cost for new tenancy based on $800.00 +GST per square meter = $384,000.00 + GST

Case Study 4: VET Provider (Sydney)

Increased Revenue Potential:

Increase student numbers by 70 students per shift over 1 floor 
Increase of campus revenue @ $170.00 gross per student per week (average) = $11,900.00 per week 
Multiply by 3 shifts per week = $35,700.00 increase revenue potential per week 
Multiply by 50 weeks per year = $1,785,000.00 additional income potential from the same fixed lease costs (re-accruing per year). 

Reduced Fixed Lease Cost

To achieve an additional 70 students at anyone time and the associated revenue in the standard approach, you would need to lease, on average, an additional 280m2. If you could find this space in Sydney (very difficult at the moment) the lease cost would be currently approx. $600.00 + GST per square meter, adding an additional $168,000.00 to the annual lease commitment for the organisation.

Therefore, the extra cost to the business to achieve the same potential increase in revenue would be:

$168,000.00 + GST lease cost (recurring PA) x 5 year lease = $840,000.00 + GST.
Legal fees and Bond?
Fitout cost for new tenancy based on $800.00 +GST per square meter = $224,00