This article is from the Australian Property Journal archive
ASPEN Group and Mill Hill Capital have ceased talks to acquire the Edward Baillie Capital Hotel & Leisure Fund for $31.25 million.
Aspen and MHC, an associate of Aspen’s non-executive director John Carter had been looking to acquire the EBCHLF portfolio, which consists of four, 100% owned and managed, freehold hotel / motel properties located in Tasmania (three) and New South Wales (one).
Aspen setup an independent board to undertake due diligence.
Aspen independent non-executive chairman Frank Zipfinger said discussions have proceeded since that time but no agreement on the terms to acquire the assets was reached.
“As a result, discussions between the parties are now at an end and Aspen Group will not be proceeding with the MHC proposal,” he added.
Instead, Zipfinger said Aspen will now initiate its previously announced on-market buyback of up to 10% of its securities on issue.
Aspen also provided its distribution guidance for 2H FY16 of 4.6 cents per security.
“Aspen Group continues with its acquisition programme in the accommodation sector.
“Aspen Group has decided not to proceed with the acquisition of one asset previously announced to be in exclusive due diligence; the other remains in due diligence along with the previously announced expansion opportunity at Mandurah Gardens Estate,” he concluded.
Australian Property Journal
