Aspen continues asset sale

Property investment company Aspen Group has continued off-loading residential development assets, announcing today the sale of its 45-per cent-owned Fern Bay Seaside Village syndicate in New South Wales for $17.6 million.

The Perth-based developer, which is simplifying its operations and narrowing its business focus, said settlement of the transaction was due in June next year.

Aspen said it expected to receive net proceeds of $2 million after repaying the syndicates bank debts and allowing for transaction costs.

It will also no longer have to pay $4.9 million in guarantee obligations in relation to the syndicate.

“This transaction continues the progress that Aspen is making on its non-core asset sale programme, in line with our announced strategy to simplify and focus the business to restore shareholder value,” chief executive Clem Salwin said in a statement.

The sale of Fern Bay follows Aspen placing its $311 million commercial property portfolio, including Adelaide Terrace’s Septimus Roe office tower, on the market in August.

Aspen earned $203 million from non-core asset sales in financial year 2013, one the way to a $34.3 million net loss, a 76 per cent rebound from the previous year.

AT 12:00PM, WST, Aspen shares were up 4.2 per cent, at 17.2 cents.