ASPEN GROUP — Capital/Financing Update 2015

Dec 15, 2015

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MARKET RELEASE

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----- Start of picture text ----- Aspen Group LimitedABN 50 004 160 927Aspen Property TrustARSN 104 807 767Level 18, 9 Hunter StreetSydney NSW 2000Telephone: 02 9151 7500Facsimile: 02 9151 7599Email: homemail@aspengroup.com.au----- End of picture text -----

ASX ANNOUNCEMENT 16 December 2015

Aspen Parks Property Fund – investor update

Aspen Group (ASX: APZ) notes the release of an investor update by Aspen Parks Property Fund. A copy of this update is attached.

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Aspen Parks Property Fund ARSN: 108 328 669

Aspen Parks Property Management Ltd ABN 91 096 790 331 Aspen Funds Management Ltd ABN 48 104 322 278 Suite 9, Level 1 100 Railway Road Subiaco WA 6008 PO Box 2003 Subiaco WA 6904

T 1800 220 840 F +61 8 9225 7411 w www.aspenfunds.com.au e funds@aspengroup.com.au

Continuous Disclosure

Aspen Parks Property Fund

Date: 16 December 2015 Title: Investor update

Operational performance to November 2015

Aspen Parks Property Fund (“APPF”) provides the following update on operating performance for the five month period ended November 2015, due to the current takeover offer[1] for APPF.

On a like-for-like basis, unaudited net property income was down 15% for the five month period to November 2015 compared with the same period to November 2014. This largely reflects the continuation of existing trends, most notably the weakness in those properties operating in the resources sector.

Operating performance for the full year remains materially in line with expectations, with unaudited net property income being 5% below budget for the five month period.

Distribution

There is no change in the annualised distribution rate of 4.0 cents per APPF security.

Change of control

As disclosed in the continuous disclosure update on 9 December 2015, Discovery held a relevant interest in APPF of 43.88% as at that date.

As a change of control may occur, APPF has commenced the process of obtaining consents (where applicable) to a change of control by virtue of Discovery’s security holding in APPF.

(1) [1] The unsolicited, off-market takeover offer from Beston Parks Land Co Pty Ltd (ACN 111 783 423) as trustee for the Beston Accommodation Parks Trust (ABN 61 229 965 660), a wholly owned subsidiary of Discovery Parks Holdings Pty Ltd (ACN 127 847 269) (“Discovery”).

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APPF’s debt facility

Under APPF’s debt facility APPF’s lender has a review event if there is a change of control in APPF without the lender’s prior written consent. The lender is required to act reasonably and in good faith in this regard. The lender has not as yet exercised a review event.

APPF’s lender also has a review event on APPF’s debt facility if the responsible entity of Aspen Parks Property Trust were to change.

A review event entitles the lender to review the ongoing availability of the debt facility, including to alter the terms of the debt facility (including pricing and term) or to require repayment in full.

Lease agreements

APPF holds eight parks (in whole or in part) under leasehold, where APPF leases the land on which the park is located from the owner of the freehold.

At three of these parks representing 8% of APPF’s portfolio by carrying value (as at 30 June 2015), the lease agreement requires the lessor’s consent to a change of control of APPF, and if consent is not obtained APPF would be in default. In this instance, the lessor may have the ability to, depending on the terms of each individual lease, either renegotiate or terminate the lease agreement. This may include the amount of rent paid and the length of the lease. If a lease is terminated, this would result in APPF losing the management and profits from the leasehold property.

If you have any queries, please contact your financial adviser or Aspen Investor Services on 1800 220 840.

Phil Barker Head of Funds Management

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Appendix

Operating performance, five month period, November 2015 vs November 2014

PropertyNOI($m)	Nov-14Nov-15varianceYTD Total
RevenueShort stay / residentialResourcesTotalCostsShort stay / residentialResourcesTotalNet incomeShort stay / residentialResourcesTotalMarginsShort stay / residentialResourcesTotal	12.512.60%5.23.7-28%
	17.716.3-8%6.86.7-1%2.52.5-2%
	9.39.2-1%5.75.92%2.71.3-53%
	8.47.1-15%46%47%1%52%34%-18%
	47%44%-4%

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