Aspen Group closes issue

Listed Western Australian company Aspen Group has announced that its entitlement issue, which opened on January 4, closed as scheduled on January 21 with acceptances totalling 80.9 per cent of the issue.

The issue, which will raise $14.9 million through the issue of 74.5 million stapled securities at $0.20, was undertaken to provide all security holders with an opportunity to participate in the growth of the group.

The shortfall will be placed by underwriter Patersons Securities Limited, with the allotment to be completed on February 1 and trading of the new securities to begin on February 2.

“We are delighted with the strong support shown by our security holders, which we believe is a reflection of the strong growth the group has experienced over the past two years and is an endorsement of the group’s direction,” managing director Angelo Del Borrello said.

Following completion of the entitlement issue, the proceeds will be used to reduce Aspen’s gearing level to 50 per cent, from which it intends to maintain its focus on growing the core property investment portfolio and funds management activities.

Aspen’s total property assets are valued at $155 million, with the office sector comprising 47 per cent of assets.

Earlier last year the group bought six WA caravan parks from the Fleetwood Corporation, and subsequently acquired a further two parks in Exmouth and Brisbane.