Listed property biz Aspen Group in $36.3m raise to trim gearing – The Australian Financial Review

Listed property owner Aspen Group has put a $36.3 million placement to investors to pay down debt, after sounding fund managers on Monday evening.
Aspen owns the Four Lanterns Estate at Leppington in Sydney. 
The offer was priced at $1.58 a share, a 4.5 per cent discount to the last close, 11.7 per cent discount to the June 30 net asset value and 4.2 per cent discount to the distribution yield.
Aspen would use the proceeds to pay down debt and to position itself for acquisition opportunities, according to the term sheet sent to potential investors. It planned to chase it up with a $3 million share purchase plan.
The raise would take its debt from $127.7 million to $92.8 million and reduce the gearing level from 28 per cent to 20 per cent.
Bids into the placement were due 5pm on Tuesday.
MA Moelis Australia Advisory and Taylor Collison were the joint lead managers. Moelis was also the sole underwriter.
Aspen invests in affordable housing, and its raise gives heart to listed real estate groups where fund-raising has been quiet while REITs trade at steep discounts to asset backings.
Aspen Group’s revenue increased 31 per cent to $46 million in the 2022 financial year, while operating earnings were up 34 per cent to $11.8 million. It had 4646 dwellings/sites as at June 30 and $452 million in assets.
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