Aspen secures Newcastle housing development
You can purchase access to this special report or subscribe to Business News.
Subscribe to Business News.
Perth-based property developer Aspen Group Ltd has secured development rights at a Newcastle, NSW residential land subdivision, triggring a $76.6 million loan to the land's existing owners.
Under the agreement Aspen will develop the Fern Bay Seaside Village project through a funds management vehicle - Fern Bay Seaside Village Ltd - and receive a development fee on a per lot sold basis.
FBSV will fund the loan consideration through a combination of debt and equity. An equity raising document is due for issue in March 2007, with Aspen already committing to a cornerstone investment of 20% of the equity to be raised.
The Fern Bay project is a 220 hectare master-planned community 15km north of Newcastle, next to a beach and pre-existing golf course.
The full text of a company announcement is pasted below
Aspen Group is pleased to confirm its newly created funds management vehicle Fern Bay Seaside Village Ltd has completed agreements to secure the development rights to a residential land subdivision located in Newcastle, NSW.
As per the announcement on 8 February 2007 Aspen sees the creation of FBSV and development of the Fern Bay Seaside Village as a further exciting development for its Aspen Estates residential subdivision business.
Under the agreement, FBSV will manage the development of the land and receive a development fee on per lot sold basis. Development of the land has already commenced with some 66 lots sold from an estimated project total of 881 lots, providing immediate income to FBSV.
Settlement of the agreements will be by way of a $76.6 million loan to the present owners, joint venture partners Winten Property Group and CVC Ltd.
FBSV will fund the loan consideration through a combination of debt and equity. An equity raising document is due for issue in March 2007, with Aspen already committing to a cornerstone investment of 20% of the equity to be raised.
"Given the advanced nature of the Fern Bay estate Aspen believes FBSV will provide an attractive development fund for investors," said Aspen Managing Director Mr Angelo Del Borrello.