ASPEN GROUP — Capital/Financing Update 2022

Dec 22, 2022

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----- Start of picture text ----- Aspen Group LimitedABN 50 004 160 927Aspen Property TrustARSN 104 807 767Suite 21, 285A Crown Street Surry Hills NSW 2010Telephone: 02 9151 7500----- End of picture text -----

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----- Start of picture text ----- Email: homemail@aspengroup.com.au----- End of picture text -----

ASX ANNOUNCEMENT 23 December 2022

Aspen Group

Acquisition – Black Dolphin Motel Merimbula

Aspen Group (ASX: APZ) (‘‘Aspen’’) is pleased to announce that it has contracted to acquire the Black Dolphin Resort Motel (“Black Dolphin”) in Merimbula, NSW. Settlement is expected to occur on 1 March 2023.

Merimbula is an attractive coastal location on the Sapphire Coast of NSW, about halfway between Sydney and Melbourne and 3 hours’ drive from the ACT. The region is popular with tourists and retirees.

Black Dolphin is adjacent to Aspen’s Tween Waters Holiday Park (“Tween Waters”) separated by a minor side road. The properties are in an attractive part of Merimbula between the beach and river (not in the 1 in 100 year flood zone) and close to town. The surrounding properties are typically 3-storey apartment buildings, with new top end apartments recently selling for over $1 million.

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----- Start of picture text ----- Black DolphinTween Waters----- End of picture text -----

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----- Start of picture text ----- Tween WatersBlack Dolphin----- End of picture text -----

Black Dolphin

Black Dolphin is a motel complex with 49 units comprising 47 rooms and 2 large apartments currently used as manager accommodation. The land spans 1.04 hectares as is zoned for medium density residential (R3). It has a large dining room, licenced bar, kitchen, function room, swimming pool, half-court tennis, BBQ facilities and landscaped gardens.

Aspen will combine the operations of Tween Waters and Black Dolphin and upgrade both properties with the aim of achieving the following benefits:

• Improved quality through refurbishment of cabins / rooms and amenities

• Broader customer base – Black Dolphin attracts more couples, retirees and workers than Tween Waters which is skewed to family tourists including caravaners

• Mildly reduced seasonality

• Revenue synergies – improved marketing & distribution, dynamic pricing, adding two manager apartments to the rental pool

• Cost synergies – single dedicated manager, single reception, more consistent base workload for casuals, increased utilisation of shared facilities

The combined land spans about 3 hectares and initially has 145 approved dwellings/sites comprising 80 cabins/rooms and 65 sites. There are opportunities to improve utilisation of the properties such as converting Black Dolphin’s dining and conference rooms into recreation space and motel rooms with views to the river, and adding cabins on the spare land across both properties. Over the long run, highest and best use may be good quality, multi-storey residential that could be used for tourism and retirement purposes.

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Pricing

The purchase price is $5.20 million (excluding transaction costs), equating to about $106k per unit, which is roughly the cost of acquiring a new, small 1 bedroom holiday cabin excluding land.

We expect to generate a stabilised ROCE of over 8% through combining and upgrading Tween Waters and Black Dolphin.

Announcement authorised by the Board of Aspen Group Limited.

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For further information, please contact:David DixonJoint Chief Executive OfficerPhone: (+61) 2 9151 7584Email: davidd@aspengroup.com.au	John CarterJoint Chief Executive OfficerPhone: (+61) 2 9151 7586Email: 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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