• Aspen Group acquires a portfolio of 19 retirement properties in Adelaide
• Portfolio comprises 129 villas spanning ~32,000 sqm of land
• Purchase price of $19 million with expected initial yield of ~6%

Aspen Group (ASX: APZ) has announced the acquisition of a portfolio of small retirement villages from ACH Group, an Adelaide-based not-for-profit organization. The portfolio comprises 19 properties with 129 villas encompassing approximately 32,000 square meters of land, located predominantly in inner-metropolitan Adelaide suburbs where median house prices exceed $1 million. The villas were typically built in the 1990s and are currently occupied under a variety of lease types, including standard Residential leases with below-market rents or Retirement Village (RV) licenses governed by the Retirement Villages Act. The average age and tenure of RV residents is over 80 years and 10 years, respectively. Aspen intends to convert the RV licenses into standard Residential leases when RV tenants vacate their villas, as the properties are sub-scale for Retirement Village use. This will increase capital employed in the Residential component of the portfolio over time and free up the properties for general residential purposes at Aspen's targeted rent points. The purchase price for the portfolio is $19 million, with implied pricing per dwelling ranging from approximately $395,000 for unencumbered villas with Residential leases to $65,000 for villas with RV licenses and a 25% deferred management fee. The initial yield on the portfolio is expected to be around 6%, comprising a mixture of Residential rental income and RV DMF accrual/cash rolls. Settlement is expected to occur in August 2025, and the acquisition is expected to be funded with debt.