Listed property trust Aspen Group Ltd is set to go to the market for fresh funding following confirmation of its $93.5 million purchase of the Dunsborough Lakes residential development from Ric Stowe's Griffin Group.
After entering a trading halt yesterday, managing director Angello Del Borrello announced the group had signed a heads of agreement with owner WR Carpenter Properties, a subsidiary of Griffin Group, to acquire Dunsborough Lakes for about $93.5 million.
Mr Del Borrello said financing for the acquisition will come from a syndicate of three to four institutional or "high net worth" investors and would not be put out to the retail market, with Aspen also contributing a sum equal to 20 per cent of the equity raised.
A new fund is being created to hold the asset, he said.
"WR Carpenter has positioned Dunsborough Lakes well to grow and we will initially continue their plan and vision.
"Dunsborough Lakes is a diverse estate which includes industrial and tourism sites and there is a scope to overlap with some of Aspen's other funds," he said.
The purchase builds on Aspen's growing portfolio of assets, which has made it the second largest LPT from Western Australia, with a market value of about $156 million.
Mr Del Borrello added that he felt the WA market was performing well and that Dunsborough Lakes was one of the few zoned locations in which the town could grow.
Considered one of the South West's largest property transactions, the Dunsborough Lakes deal involves the sale of a 230 hectare development site encompassing residential, commercial, tourist and industrial lots surrounding an 18 hole golf course, located in Dunsborough town. It represents Aspen's first move into the residential property development market.
WR Carpenter bought Dunsborough Lakes in 2002 from Perth-based Axiom Properties for $7.72 million.
A final settlement date for the deal has been slated for January 24.
Griffin is expected to use proceeds from the sale to expand its interests in the energy sector.
