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ASPEN GROUP — Capital/Financing Update 2017
May 24, 2017
64404_rns_2017-05-24_829c0f7c-447a-4715-9798-d026460b3f43.pdf
Capital/Financing Update
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Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767 Level 3, 37 Pitt Street Sydney NSW 2000 Telephone: 02 9151 7500 Facsimile: 02 9151 7599 Email: [email protected]
ASX ANNOUNCEMENT 25 May 2017
Aspen Group Limited (ASX:APZ) Portfolio Update
Exclusive due diligence to acquire assets exceeding $25 million
Aspen Group Limited (Aspen) advises that it is currently undertaking exclusive due diligence in respect of two assets with a total value exceeding $25 million (excluding acquisition costs). The acquisitions are conditional upon satisfactory completion of due diligence and remain subject to contract. These acquisitions, if they proceed, would be immediately accretive to earnings.
Subject to completion of due diligence, the assets would be financed through the recently announced $80 million Westpac facility. Settlement is expected to occur in 1H FY18.
Q1 2018 settlement target for acquisition of BIG4 Koala Shores Holiday Park
Settlement of the previously-announced acquisition of BIG4 Koala Shores Holiday Park (Koala Shores) has been deferred pending satisfaction of conditions precedent in the purchase agreement.
The land comprising the property is a combination of freehold, long leasehold and Crown licence. Pursuant to the acquisition contract exchanged in November 2016, settlement is conditional upon transfer of the Crown licence. This process has become protracted and consequently settlement is delayed.
Aspen expects that the transfer of the Crown licence will occur in Q1 2018 with settlement achieved
shortly thereafter.
The updated settlement timetable will not impact the achievement of the Group’s forecast distributable earnings[1] for this financial year-end expected in the range of 4.8 to 5.3 cents per security.
1Distributable earnings represented by net profit after tax excluding property depreciation and non-underlying items less stay in business capex.
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For further information, please contact: Joel Cann Emmanuel Zammit Chief Executive Officer Chief Financial Officer Phone: (+61) 2 9151 7500 Phone: (+61) 2 9151 7500 Email: [email protected] Email: [email protected]