Aspen Group has completed agreement to secure the development rights to a residential land subdivision located in Newcastle, New South Wales.
The development will be held by Aspen’s newly created funds management vehicle Fern Bay Seaside Village.
Under the agreement, FBSV will manage the development of the land and receive a development fee on per lot sold basis. Development of the land has already commenced with some 66 lots sold from an estimated project total of 881 lots, providing immediate income to FBSV.
Settlement of the agreements will be by way of a $76.6 million loan to the present owners, joint venture partners Winten Property Group and CVC Limited.
FBSV will fund the loan consideration through a combination of debt and equity. An equity raising document is due for issue in March 2007, with Aspen already committing to a cornerstone investment of 20% of the equity to be raised.
Australian Property Journal
