ASX-listed Aspen Group’s Joint CEOs John Carter and David Dixon have been resoundingly supported by shareholders who voted overwhelmingly to buy Marina Hindmarsh Island Fund, which owns Coorong Quays on Hindmarsh Island, SA.
Coorong Quays is a mixed-use residential, retirement (Alexandrina Cove pictured) and park community with over 3,000 approved sites on 300ha of land. Aspen said in February over 90% of 1,842 sites developed to date at Coorang Quays were occupied and producing income.
The first four homes of Stage Two under the new Land Lease living model at Alexandrina Cove have been completed, with three already sold. Construction is about to commence for another two homes, with another four scheduled for construction shortly after.
The $25 million purchase price is mainly in Aspen Group securities. Marina Hindmarsh Island Fund elected to receive only $1.16 million in cash.
Aspen Group Chairman Clive Appleton told shareholders as new residents move into Coorong Quays, which is at the mouth of the Murray River adjoining Coorong National Park, they tend to use Coorong Quays other facilities: marina berths, caravan storage and the tavern.
“Current contracts on hand for residential land sales and land lease community houses total over $8 million. The transaction reduces Aspen’s gearing and is expected to increase underlying earnings per security,” he said.
In addition, Aspen told shareholders rents and values of its businesses continued to grow in the second half of FY22.
“Including Coorong Quays, we are now selling new houses at six of our retirement communities compared to only one in FY20,” he added.
