aspen-group-strathalbyn-lewis-fields-development-satellite-screenshot
Image – Aspen Group.
  • The $2.36 million purchase is now worth $2.4 million
  • 54 homes yet to be developed
  • Strathalbyn currently has a vacancy rate of 0%

In May this year, Aspen Group (ASX: APZ) made its fifth acquisition.

Located in Strathalbyn, South Australia, the township is about 60 kilometres southeast of Adelaide and is a self-described ‘heritage town’, of population circa 6,500. It is known as the gateway to the Langhorne Creek wine region.

rolling green hillocks at South Australia's Strathalbyn memorial gardens
The picturesque township of Strathalbyn has one of Australia’s lowest vacancy rates. Image – Wikimedia Commons.

The Lewis Fields Retirement Village spans 3.7 hectares, the property was purchased for $2.36 million, and since been independently valued at $2.40 million.

“The valuer applied a 17% discount rate on the contracted deferred management fee stream and a rate of $600k per hectare on the spare land which equates to approximately $25k per approved site.”

Aspen Group

Today, the company announced it had settled the Lewis Fields Retirement Village, the company continues to “selectively redeploy capital from [its] Perth residential portfolio where it is more beneficial to sell than to re-lease once tenants vacate and refurbishment works are completed.”

“We expect the acquisition to be accretive to both NAV and EPS over the medium term”

Strathalbyn

The most recent vacancy rates for the area are staggering: 0.0%

Vacancy rates for Strathalbyn (5255)

Over the years, there practically has been no trend to the vacancy rates in the idyllic township, but in the latter half of Covid year, vacancy rates dropped to 0% numerous times.

That has driven the rent up, asking rents for Strathalbyn fetch some $435 per week.

Strathalbyn Asking Rents

Adelaide was only a hairsbreadth more at $443 per week.

Adelaide Asking Rents

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