Property developer and funds manager Aspen Group has borrowed $35 million from joint venture partner Telstra Super, in order to “undertake the realisation of value” from its interest in the under-construction ATO Building in Adelaide.
Aspen announced today that its Franklin Street Property trust, the holding vehicle for the ATO Building, had entered a $35 million convertible note facility with Telstra Super, repayable within three years at 10.5 per cent per annum.
The Franklin Street trust and Telstra Super are developing the ATO Building in a 50:50 joint venture.
Once complete, it will be the largest commercial tower in Adelaide's CBD, with 36,700 square metres of office space.
Aspen Group managing director Gavin Hawkins said the funding would provide the company with increased working capital while creating additional balance sheet strength.
“A key benefit of the convertible note facility is that provides Aspen with flexibility to progress its other capital management initiatives, and importantly, undertake the realisation of value of our interest in the ATO building,” Mr Hawkins said.
Mr Hawkins said the ATO Building has progressed on budget and is on target for practical completion in October.
Meanwhile, Aspen also announced today it had restructured financing arrangements for one of its residential property syndicates in the Swan Valley.
Aspen said that it had entered into a new three-year, $30 million debt facility with ANZ for its St Leonards estate.
“The facility refinances the existing bank facility on improved terms and provides for an initial LVR of 55 per cent, tailored to meet the ongoing development requirements of the St Leonards Estate,” the company said in a statement.
At 11:30AM, WST, Aspen stocks were up 1.43 per cent, trading at 35.5 cents.
