This article is from the Australian Property Journal archive
ASPEN Funds Management Limited has sold the remaining six properties held by the Aspen Diversified Property Fund for $76.5 million.
The sale completes the wind up of the eight year-old fund, voted for by unitholders in July last year.
It follows the sales of its Nunawading asset in September, and of the Castle Hill homemaker Centre in New South Wales for $19.0 million in January.
Denison Diversified Property Fund purchased the assets at a 4.6% discount to total book value, resulting in a reduction of 0.2 cents per security on Aspen Group’s net tangible assets.
Aspen said the proceeds from the sale would be used to repay the Fund’s borrowing, comprising a senior debt facility with NAB of $45.7 million and a subordinated loan from Aspen Group of $8.6 million, with the balance returned to preference unitholders.
The repayment of the loan to the Fund, together with the capital return on its Preference Unitholding in the Fund will result in a total net cash return of around $17.0 million, to be used for debt repayment and working capital.
“The fund will seek to realise its residual investment in the Denison Diversified Property Fund through a sale or in specie distribution to Preference Unitholders, and then proceed to wind up the fund,” Aspen said.
Property Review
