21/10/2009 - 13:16

Tough year for Aspen Group

21/10/2009 - 13:16

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Perth-based property funds manager Aspen Group has outlined steps taken to address market pressures, which resulted in a $64.7 million loss for 2008-09 after the financial crisis severely hurt property valuations, management fees and transaction activity.

Tough year for Aspen Group

Perth-based property funds manager Aspen Group has outlined steps taken to address market pressures, which resulted in a $64.7 million loss for 2008-09 after the financial crisis severely hurt property valuations, management fees and transaction activity.

In the previous financial year the listed group recorded a $70.1 million profit.

Aspen managing director Angelo Del Borrello said it wasn't a surprise that the last 12 months were extremely challenging for property companies.

In a report to shareholders, he said that the company had taken significant steps to address the market pressures.

"Our focus this financial year has been on consolidating our business, on debt reduction and of maintaining balance sheet strength of both Aspen Group and its managed funds," Mr Del Borrello said.

Aspen successfully raised more than $80 million through a capital raising during the year, which was used to secure enhanced senior debt facility terms with financier National Australia Bank.

Aspen's investment property rental income increased in the 12 month period - from $32.6 million to $43 million - but its funds management revenue decreased substantially, according to income statements.

The fair value of its investment properties slid $28.9 million during the year.

One of its funds, the Aspen Diversified Property Fund, suffered a turbulent year after it got caught with high levels of gearing as credit markets froze.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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