ASPEN GROUP — Capital/Financing Update 2021

Apr 28, 2021

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----- Start of picture text ----- Aspen Group LimitedABN 50 004 160 927Aspen Property TrustARSN 104 807 767Suite 21285A Crown StreetSurry Hills NSW 2010Telephone: 02 9151 7500Email: homemail@aspengroup.com.au----- End of picture text -----

ASX ANNOUNCEMENT 29 April 2021

Settlement of Co-living Community, Upper Mount Gravatt QLD

Aspen Group (which comprises Aspen Group Limited and Aspen Property Trust) (ASX: APZ) is pleased to announce that it has settled the acquisition of a Co-living community in Upper Mount Gravatt, Queensland. The property comprises 66 apartments with predominantly 4 or 6 bedrooms, over 130 undercroft car parking spaces, and extensive resort style facilities. This is Aspen’s fourth acquisition in FY21 and adds to our SE Queensland cluster alongside the Burleigh Heads build to rent project.

The purchase price is $18.5 million before acquisition costs equating to about $280,000 per apartment. The median sales price of a 3-bedroom apartment in Upper Mount Gravatt is $418,000 (realestate.com.au).

Over the next 12 months we intend to broaden the student customer base if required to include other like-minded customers who value the Co-living experience and relatively cheaper rents that currently average about $200 per week per room including furniture, electricity, water, internet and a fortnightly clean of common areas. We expect the net income yield to recover to over 5% within the next 18 months as occupancy stabilises and from reducing operating costs. The current occupancy is around 80% noting there is seasonality related to the tertiary education calendar with mid and end of year holiday periods.

The land is zoned High Density Residential Up to 8 stories, and about 24,000sqm of gross floor area can be developed which is over twice the current density. In our opinion these attributes will help drive relatively high capital growth over time.

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

UMG Co-living Community

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The acquisition has been funded with debt. Aspen’s debt facility limit has been increased to $91 million and the duration has been extended to April 2024. Total margin is +190bps above BBSY.

Further information regarding the acquisition was released to the ASX on 31 March 2021.

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

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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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