- Aspen Group (APZ) is set to acquire a residential land site at 32 Sims Road, Mount Barker, South Australia for $4.51 million
- The 11.5-hectare property is in an up-and-coming area with the local population growing at around 3 per cent each year
- Mount Barker’s growth is being supported by federal, state and local governments including $50 million on new aquatic and sports centres
- Aspen is planning to develop a land lease community and residential lots at a price that’s significantly below the local median house price of $425,000
- The acquisition is expected to be settled before the end of this year
- Aspen ended the day trading 3.14 per cent higher at $1.15
Aspen Group (APZ) is set to acquire a residential land site at 32 Sims Road, Mount Barker, South Australia under a Mortgagee in Possession sale.
The 11.5-hectare site adds to the company’s assets in South Australia alongside Adelaide Caravan Park, Highway 1, Coorong Quays and CREST at Woodside.
Aspen is acquiring the property for $4.51 million (excluding refundable GST and transaction costs), which equates to about $400,000 per hectare.
Mount Barker is located in the Adelaide Hills which is only 33 kilometres and 35 minutes by car from the Adelaide city centre.
Mount Barker is an up-and-coming town with a population of 37,000 that is growing at about 3 per cent per year. Over the next 10 years, forecast population growth in the Mount Barker Growth Area is about 8800 people including the over-50s age group which is expected to increase by 1800 people.
This growth is being well supported by federal, state and local governments including $50 million of funding for new aquatic and sports centres.
Currently, 97 residential lots have been approved for development at the site. Each lot is 650 square metres on average and developed lots in the estate have sold for an average price of around $180,000.
Aspen is planning to develop a land lease community and residential lots which are affordable.
“Our plan is to offer more competitively priced product whilst still generating attractive investment returns,” the company posted.
The aim is to sell land lease house from under $300,000 and residential land lots from under $100,000 to offer house and land packages under $300,000. This price point is a significant discount to the current local median house price of $425,000.
Settlement of the acquisition is expected to occur by the end of the year after the new title is created.
Aspen ended the day trading 3.14 per cent higher at $1.15.