This article is from the Australian Property Journal archive
ASX-listed Aspen Group has acquired two apartment buildings in Sydney’s northern suburb of Lindfield for $8.65 million from a not-for-profit aged care and retirement services provider.
The properties are located close to each other, on Treatts Road and Pacific Highway, and are less than 800 metres from the Lindfield train station and retail precinct. They comprise 42 studio and one-bedroom apartments that are currently occupied under a mix of retirement village and residential leases.
Aspen intends to refurbishment and redevelop the new acquisitions over time.
The Treatts Road property is located in a low-density heritage conservation area and “it would be very difficult to replicate its built scale in this locality”, Aspen said, while the Pacific Highway property is located in a major transport thoroughfare, and is zoned for high-density residential allowing for significantly more floorspace.
“Both properties are highly suitable for the provision of affordable accommodation in this highly attractive suburb in Sydney,” the group said.
Settlement is expected in late August.
The transaction price comes in at around $206,000 per unit. The expected first year yield is around 3%. Current average weekly rents are $112 for the retirement village tenants and $326 for the residential tenants.
Aspen will fund the acquisition with debt and its full-year guidance remains unchanged for underlying earnings per security of 6.75 to 7.00 cents, and distribution per security of 6.00 cents.
