Aspen Group has picked up a portfolio of 17 Perth residential investments from interests associated with the Buckeridge Group of Companies (BCG), via a Nomination Deed with a third party.
The outlay is $52 million.
To fund it, the ASX-listed group has embarked on a $28.3m capital raising exercise; UBS AG is its lead manager for a $23.2m placement.
While the rental yield on the purchase is low – expected to be between 1-1.5 per cent for the first year – Aspen is intending a rise to c5pc following a refurbishment and re-leasing initiative.
The BTR portfolio
The portfolio – considered by Aspen as Build to Rent product – includes 514 apartments and units containing a total of 855 bedrooms.
The average dwelling area is 55 square metres.
All up the properties cover 4.7 hectares.
Most complexes were developed in the 1970s.
About half are in premium areas where the median house price exceeds $1.5m including Applecross (813 Canning Highway and 74 Matheson Road), Claremont, Swanbourne and Trigg (55 Lynn Street).
Another asset is at Glendalough.
The balance are in Maylands – amongst them, 3, 13-15 and 17-21 Kathleen Avenue, 16-18 Tenth Ave, 132 Guildford Rd (pictured, top), 126 Peninsula Rd and 76 East St (story continues below).
Refurbishment, repositioning and redevelopment
“The condition of the apartments is highly varied from uninhabitable to refurbished/relatively new,” the buyer said.
“We intend to refurbish…where required and hold the majority as rental stock,” it added.
It estimates the capital works will cost $25m and be concluded within 18 months.
Aspen will also look to redeveloping under-utilised sites and surplus land.
Earlier this month we reported Aspen paid $18.5m for a Brisbane student accommodation complex with plans to convert it to a traditional co-living investment.
BCG, meanwhile, in May sold a portfolio of office, industrial and residential investments to Fife Capital.
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