Aspen settles on Perth apartment blocks
Aspen Capital has settled on 17 Perth apartment blocks – offloaded by the Buckeridge Group of Companies via a Nomination Deed with Fife Capital.
The $52 million deal, mooted last month, includes 514 dwellings, generally with between one and two bedrooms.
They occupy a combined 4.7 hectares.
Most were complexes were built in the 1970s.
“Western Australia is currently enjoying economic and population growth and record employment levels,” an Aspen statement said.
“Perth offers an attractive lifestyle which is well suited to Aspen’s business of providing quality accommodation on competitive terms,” it added.
“We intend to refurbish the apartments where required and hold the vast majority as rental stock.
“We expect to spend about $25m across the portfolio over the next 18-24 months”.
Work on the first 80 dwellings will start this quarter.
The deal comes five months since BCG sold Fife a portfolio of industrial and office investments (story continues below).
Prestige areas, development upside
About half of the blocks are in suburbs with a median house price of over $1.5m – including Applecross, Claremont, Swanbourne and Trigg.
The balance of the properties are in Glendalough and Maylands.
“The portfolio also offers optionality to expand/rebuild on higher density zoned sites and to recycle capital from apartments that may be less suited to Aspen’s business given their relatively high rent and price points,” Aspen said.
“The net rental yield is expected to be minimal for the first 12 months depending on how many apartments are offline for refurbishment, and to stabilise to over five per cent of the refurbishment and leasing program based on an average weekly rent of $275,” it added.
“We are targeting a valuation uplift of at least 30pc on total cost refurbishing and leasing apartments”.
The property addresses are detailed here.
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