- Branded as a co-living community which is not exclusive to university students
- $18.5M property located in Upper Mount Gravatt
- The purchase was funded with debt
The Upper Mount Gravatt acquisition was announced almost exactly a month ago, this afternoon, Aspen Group (ASX: APZ) announced the settlement of the property.
The student accommodation which Aspen has called a “co-living community” is situated close to Griffith University’s Mount Gravatt campus.
The $18.5 million purchase, Aspen said, equates to $280,000 per apartment. The community includes 66 apartments composed mostly of four to six bedroom arrangements.
Upper Mount Gravatt
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The company said in a statement that this was a strategic acquisition that didn’t exclusively cater to students, but also for those looking for a unique lifestyle:
“Over the next 12 months, we intend to broaden the student customer base if required to include other like-minded customers who value the co-living experience and relatively cheaper rents that currently average about $200 per week per room including furniture, electricity, water, internet and a fortnightly clean of common areas.”
Upper Mount Gravatt
The company also said the expected net income yield “to recover to over 5% within the next 18 months, as occupancy stabilises and from reducing operating costs.” Currently, it has an occupancy of 80%, subject to seasonality.
APZ also said the property was funded with debt, the debt facility limit “has been increased to $91 million and the duration has been extended to April 2024.”
