ASPEN GROUP — Capital/Financing Update 2021

Sep 15, 2021

Aspen Group Limited ABN 50 004 160 927 Aspen Property Trust ARSN 104 807 767

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Suite 21 285A Crown Street Surry Hills NSW 2010 Telephone: 02 9151 7500 Email: homemail@aspengroup.com.au

ASX ANNOUNCEMENT 16 September 2021

Settlement of Perth Apartment Portfolio

Aspen Group (ASX: APZ) (“ Aspen ”) is pleased to announce that it has settled the acquisition of a portfolio of apartments in Perth inner-metropolitan suburbs. The acquisition adds significant scale to Aspen and includes 17 apartment complexes comprising 514 apartments on approximately 4.7 hectares of land.

WA is currently enjoying economic and population growth, and record employment levels. Perth offers an attractive lifestyle, its residential vacancy rate is about 1%, and residential prices and rents are increasing, yet prices are generally less than they were 10 years ago and have lagged the eastern states.

The portfolio is being acquired for $52m (excluding acquisition costs), equating to approximately $101k per apartment which is well suited to Aspen’s business of providing quality accommodation on competitive terms.

The apartments generally comprise 1 or 2 bedrooms and their condition is highly varied. We intend to refurbish the apartments where required and hold the vast majority as rental stock, and we expect to spend around $25m across the portfolio over the next 18-24 months. We intend to commence refurbishment works in September on the first 80 apartments and anticipate refurbished units will progressively become available for lease from late December 2021.

The portfolio also offers optionality to expand / rebuild on higher density zoned sites, and to recycle capital from apartments that may be less suited to Aspen’s business given their relatively high rent and price points.

The net rental yield is expected to be minimal for the first 12 months depending on how many apartments are offline for refurbishment, and to stabilise to over 5% post the refurbishment and leasing program based on an average weekly rent of $275. We are targeting a valuation uplift of at least 30% on total cost post refurbishing and leasing apartments.

We expect the acquisition to be accretive to both NAV and EPS over the medium term.

Perth Apartment Portfolio

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Located in Perth’s inner-metropolitan suburbs

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Trigg
Glendalough
Maylands
Swanbourne
Claremont
Applecross
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Further information regarding the acquisition was released to the ASX on 19 August 2021.

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Announcement authorised by the Board of Aspen Group Limited.

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

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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