ASPEN GROUP — Capital/Financing Update 2020

Oct 25, 2020

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Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767 21 Oxford Street Bondi Junction NSW 2022 Telephone: 02 9151 7500 Email: homemail@aspengroup.com.au

ASX ANNOUNCEMENT 26 October 2020

Acquisition – Mount Barker, South Australia

Aspen Group (ASX: APZ) (“ Aspen ”) is pleased to announce that it has entered into conditional contracts to acquire a residential land site of approximately 11.5 hectares at 32 Sims Road, Mount Barker, South Australia under a Mortgagee in Possession sale. Settlement is expected to occur by the end of calendar 2020 after the new title is created.

The property adds to the group’s substantial cluster in South Australia alongside Adelaide Caravan Park, Highway 1, Coorong Quays and CREST at Woodside, and we expect our quality local team of employees, consultants and contractors to add substantial value to the project.

Mount Barker Land – Approximately 11.5 Hectares

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Mount Barker offers an attractive lifestyle in the Adelaide Hills only 33 kilometres and 35 minutes by car from the Adelaide city centre.

Mount Barker local government area has a population of over 37,000 growing at about 3% per annum. The property is situated within the Mount Barker Growth Area (MBGA) which is a policy defined area created by the SA Government to foster supply of new residential accommodation. Over the next 10 years, forecast population growth in the MBGA is about 8,800 people including the over-50s cohort which is expected to increase by 1,800 people (source: .id community). This growth is being well supported by federal, state and local governments including, for instance, $50 million of funding for new aquatic and sports centres.

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Mount Barker has similar socio demographics to the rest of Australia (2016 census):

	Mount Barker	Australia
Median age	39	38
% Population >50 years	35%	34%
Population growth 2011-2016	12.2%	8.8%
Average number of people per household	2.6	2.6
Degree/diploma educated	28%	31%
Median household income	$1,425	$1,438
Unemployed	5.2%	6.9%

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----- Start of picture text ----- Aspen’s South Australia Cluster Mount Barker FacilitiesHighway 1ACPCREST Historic Town CentreMount BarkerModern Retail and EntertainmentCoorong QuaysNew Regional Sports Hub----- End of picture text -----

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Aspen’s Development Plan

Currently, 97 residential lots have been approved for development on the site that Aspen is acquiring. The lots are 650sqms on average and developed lots in the estate have sold for an average price of approximately $180,000 to date.

We are planning to instead develop a land lease community and residential lots, subject to Council approving the change. Based on a minimum lot size of 200sqm under current planning rules, about 200 lots can be developed on the site while still allowing for substantial public reserves and parks. Density would be about 17 lots per hectare which is half the density of our Four Lanterns and Sweetwater Grove communities. We believe our plan is consistent with the site’s Residential Neighbourhood Zoning and caters to the region’s need for housing that is more affordable and suitable for its rapidly growing over50s cohort.

The acquisition increases Aspen’s on-balance sheet development pipeline 2-3 times by number of lots depending on the final scheme approved.

Pricing

The purchase price is $4.51 million (excluding refundable GST and transaction costs), equating to approximately $400,000 per hectare, $46,000 per currently approved residential lot and $23,000 per planned lot.

Our plan is to offer more competitively priced product whilst still generating attractive investment returns. We are aiming to sell quality land lease houses from under $300,000 and residential land lots from under $100,000 to allow for house and land packages under $300,000. This price point is a meaningful discount to the local median house price of $425,000 (realestate.com.au) and to new retirement village houses in the area that are being sold under a deferred management fee model.

Announcement authorised by the Board of Aspen Group Limited.

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For further information, please contact: David Dixon John Carter Joint Chief Executive Officer Joint Chief Executive Officer Phone: (+61) 2 9151 7584 Phone: (+61) 2 9151 7586 Email: davidd@aspengroup.com.au Email: johnc@aspengroup.com.au

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Disclaimer

This announcement has been prepared by Aspen Group Limited on behalf of Aspen Group Limited and Aspen Property Trust (“Aspen”) and should not be considered in any way to be an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any contract or commitment. Prospective investors should make their own independent evaluation of an investment in Aspen. Nothing in this announcement constitutes investment, legal, tax or other advice. The information in this announcement does not take into account your investment objectives, financial situation or particular needs. The information does not purport to constitute all of the information that a potential investor may require in making an investment decision.

Aspen has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Aspen, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it.

This announcement contains forward looking information. Indications of, and guidance on, future earnings, distributions and financial position and performance are forward looking statements. Forward looking statements are based on Aspen’s current intentions, plans, expectations, assumptions, and beliefs about future events and are subject to risks, uncertainties and other factors which could cause actual results to differ materially. Aspen and its related bodies corporate and their respective directors, officers, employees, agents, and advisers do not give any assurance or guarantee that the occurrence of any forward-looking information, view or intention referred to in this announcement will actually occur as contemplated. All references to dollar amounts are in Australian currency.

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