Aspen to raise over $22m in placement

Perth-based property developer Aspen Group Ltd plans to raise over $22 million to fund development works on two Karratha accommodation villages.

The company said funds will be raised through an equity placement of 24.5 million ordinary fully paid stapled securities at 90 cents each to raise some $22.1 million.

Aspen will also offer existing shareholders the opportunity to acquire stapled securities of up to $5000 at the same price as the placement under a share purchase plan.

Some $11 million of the raising will be used to develop the Balmoral accommodation village and $8.6 million will go towards the Aspen Karratha Village where Woodside is the principal tenant.

"We have been pleased with the response to the capital raising, especially in light of the very difficult
current market environment, with support from Aspen's existing institutional security holders and a number of new investors, resulting in a broadening of the Group's security register," managing director Angelo Del Borrello said.

"The new funds raised will enable Aspen to progress these quality projects which are accretive to both
earnings and NTA, and represent sound long term assets for the Group."

Shares in Apsen last traded at 88c at 14:11 AEDT, down from 95c.