Acquisition - Living & Lifestyle at Australind (Bunbury) WA
| Stock | Aspen Group (APZ.ASX) |
|---|---|
| Release Time | 2 Apr 2025, 1:45 p.m. |
| Price Sensitive | Yes |
Aspen Group acquires new accommodation complex in Australind, WA
- Aspen to acquire brand new, high-quality accommodation complex in Australind, WA
- The 18HA site is zoned for residential use with an approved Structure Plan for ~450 dwellings
- Aspen plans to reposition the property into a Living (residential rental) & Lifestyle (land lease) community
Aspen Group is pleased to announce that it has entered into a conditional contract to acquire a brand new, high-quality accommodation complex in Australind, Western Australia. The property was developed by Albemarle Corporation for the planned expansion of its Kemerton Lithium Plant, which is no longer proceeding. The 18HA site is zoned for Residential use, with an approved Structure Plan allowing for approximately 450 residential dwellings. Aspen will seek to reposition the property into a Living (residential rental) and Lifestyle (land lease) community, subject to Council and other approvals. The Australind region is experiencing acute shortages of affordable accommodation, with only one residential rental advertised at less than $400 per week and the nearby Edenlife Australind Over-50s Lifestyle community having sold around 150 houses over the past 3 years, expected to sell out of new houses shortly.The acquisition is expected to increase Aspen's scale by 16% to around 6,400 approved and planned dwellings/sites, including the recently settled Ravenswood, WA acquisition. The purchase price is $32.25 million, excluding transaction costs, and is expected to be debt-funded, increasing Aspen's pro forma gearing from 21% to 27%.Aspen expects the acquisition to improve its profitability and equity value over the medium term, though it is expected to be neutral to Underlying Earnings per Security during the initial repositioning phase, with interest and holding costs capitalized.
The acquisition is expected to be neutral to Aspen's Underlying Earnings per Security during the initial repositioning phase, with interest and holding costs capitalized.
Aspen plans to reposition the Australind property into a Living (residential rental) and Lifestyle (land lease) community, subject to Council and other approvals. The company expects the acquisition to improve its profitability and equity value over the medium term.