PROPERTY investment and funds management business the Aspen Group has received a conditional offer for a $117 million finance facility required to acquire and develop the Australian Taxation Office Building in Adelaide.
The offer comprises $108 million in funding towards the construction of the building, with interest capitalising over the development period, resulting in a total facility limit of $117 million.
It remains subject to a number of terms and conditions, some requiring the consent of third-party stakeholders, Aspen said.
The developer agreed to buy the ATO Building in February, and estimated the total cost on completion would be $183.7 million.
The ATO building is a major office tower development of 36,700 square metres of net lettable area, which is currently under construction within the CBD in Adelaide.
Aspen said its total outlay for the project would be $164 million, and to date it had contributed $28 million to the project, with the remaining equity to be sourced through working capital and other capital management initiatives.
“The receipt of this conditional credit offer represents a key milestone in the acquisition of the ATO Building, which will ultimately enhance the quality of Aspen Group’s investment property portfolio,” he said.
Mr Hawkins said the group’s due diligence process had included obtaining an independent expert report and an independent valuation to support the arm’s length commerciality of the transaction.
Construction of the building is currently on schedule with all in-ground earthworks and foundation works completed.