Aspen Group Curries favour in $50 million placement

Coming out of yesterday's trading halt, Perth-based property developer Aspen Group Ltd has announced that it has raised $50 million via a conditional placement of shares within the institutional sector.

The final issue price of $1.50 per share will be used to partly fund the acquisition of 55 Currie Street, a 12 level office building in downtown Adelaide.

Aspen's managing director Angelo Del Borrello said in a release the property complemented the group's existing portfolio, and that the response to Aspen's equity raising from the institutional sector had been very positive.

The company also anticipates the purchase will strengthen its balance sheet by reducing gearing to 32.7 per cent, and increasing the value of the group's property portfolio to $287 million.

The conditional placement was fully underwritten by Macquarie Equity Capital Markets Ltd, and will be subject to approval by security holders at a general meeting to be held on August 2.

The full release is available on the Aspen Group page at the website of the Australian Stock Exchange.