- Aspen Group (APZ) settles its acquisition of the Wodonga Gardens Retirement Estate in West Wodonga, Victoria
- The retirement village is one of the largest being developed in the region, spanning 8.8 hectares and comprising 172 houses with 51 already built
- APZ aims to develop future stages under a land lease community model, believing this to be a more attractive ownership structure for customers
- Shares closed flat at $1.49 on August 31, 2021
Aspen Group (APZ) has settled its acquisition of the Wodonga Gardens Retirement Estate in West Wodonga, Victoria.
The retirement village is one of the largest being developed in the region, spanning 8.8 hectares and comprising 172 houses, of which 51 are already built.
According to APZ, the Albury-Wodonga region has a growing population of over 100,000 people, driven by its status as a major regional city with facilities, job prospects and a lower cost of living compared to others.
The company has said it hoped to develop future stages under a land lease community model, believing this to be a more attractive ownership structure for customers.
APZ also intends to reduce exit fees for existing residents.
Further, the company said the property had been independently values in line with the purchase price of just over $6 million.
Accordingly, the valuer added a 16 per cent discount rate and a three per cent growth rate on the contracted deferred management fee stream, and a rate of around $700,000 per hectare on spare land, which equated to roughly $27,000 per approved site.
Aspen now owns and manages seven retirement communities across four states, with some 490 leased dwellings and more than 460 additional sites in the development phase.
The company expects its latest acquisition will be accretive to both NAV and EPS over the long term.
Shares closed flat at $1.49 on August 31, 2021.