Aspen secures $20.5m banking facility

Property developer Aspen Group has secured a new $20.5 million banking facility which will allow it to pay back its short-term debt and create more headroom under an existing senior facility.

The developer also added that part of the funds will be used for the development of its $28 million retirement asset portfolio.

The facility consists of two tranches with the first $12 million tranche to be used to refinance an existing $6.7 million short-term debt, which matures this month, and to re-start development activities.

The second $8.5 million tranche will be used to reduce Aspen's senior debt facility with the National Australia Bank.

The new facility paves the way for the restart of the Ballina Retirement Village in New South Wales and two retirement land assets in the West Swan and Byford in Western Australia.

Planning and development approvals are expected next year for the West Swan asset while a local structure plan application is before council for the Byford property.

Shares in Aspen dipped half-a-cent to 49c at 14:05 AEDT.