Perth-based property investment and management player Aspen Group has completed its $40 million capital raising for Aspen Dunsborough Lakes Ltd.
Perth-based property investment and management player Aspen Group has completed its $40 million capital raising for Aspen Dunsborough Lakes Ltd.
West Australian home building group Seacrest Homes acquired the final $6 million of available equity in Aspen Dunsborough Lakes.
In addition to Seacrest's investment, Aspen will look to develop a long term relationship with Seacrest, who has over 35 years experience as a home builder in Western Australia.
As per the previous announcement to the Australian Stock Exchange on February 1, the Esplanade Property Fund has completed its own capital raising, and settled its commitment of $8 million to Dunsborough Lakes.
The Esplanade Property Fund and Seacrest Homes join Aspen Group, the Wyllie Group and a small number of individuals as shareholders in Aspen Dunsborough Lakes, which acquired the Dunsborough Lakes golf course estate in January 2006 for $93.68 million.
Managing Director of Aspen Group, Mr Angelo Del Borrello was delighted, although not surprised by the success of the capital raising.
"The level of interest shown in the capital raising has been outstanding and we believe this reflects both the quality of the Dunsborough project and the confidence in Aspen's ability to deliver the investment returns projected", said Mr Del Borrello.
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DUNSBOROUGH LAKES CAPITAL RAISING COMPLETE
Aspen Group (ASX:APZ) is pleased to announce the completion of the $40 million capital raising for Aspen Dunsborough Lakes Limited ("ADLL").
West Australian home building group Seacrest Homes has acquired the final $6 million of available equity in ADLL. In addition to their investment Aspen will look to develop a long term relationship with Seacrest, who with over 35 years experience are a highly regarded home builder in Western Australia.
As per the announcement to the ASX on 1 February 2006, the Esplanade Property Fund (EPF) have completed their own capital raising, and settled their commitment of $8 million to ADLL.
The Esplanade Property Fund and Seacrest Homes join Aspen Group, the Wyllie Group and a small number of individuals as shareholders in ADLL, which acquired the Dunsborough Lakes golf course estate in January 2006 for $93.68 million.
Managing Director of Aspen Group, Mr Angelo Del Borrello was delighted, although not surprised by the success of the capital raising.
"The level of interest shown in the capital raising has been outstanding and we believe this reflects both the quality of the Dunsborough project and the confidence in Aspen's ability to deliver the investment returns projected", said Mr Del Borrello.
Aspen is also pleased to report extremely strong lot sales at Dunsborough Lakes following the acquisition and introduction of its sales and marketing initiatives. Of the 187 developed lots available for sale at settlement only 81 remain. Proceeds from lot sales to date total approximately $25 million, with the average lot price firming by 15% from initial forecasts. This bodes well for the planned additional 1260 lots, which are yet to be constructed.
The project's ability to generate income from the date of purchase was one of its key features. "Development projects in most cases take some time to become income producing however as an established estate Dunsborough Lakes will provide shareholders with development level returns, at lower investment risk, due to the immediate cash inflow," said Mr Del Borrello.
The strong progress of Dunsborough Lakes is also a positive for Aspen Group through its 20% holding in ADLL, and fee income generated through Aspen subsidiary Aspen Property Developments Pty Ltd who provides corporate, sales, marketing and project management services to the project.
