Perth, Dec 18, 2007 AEST (ABN Newswire) - Aspen Group (ASX: APZ) wishes to advise the market of its debt position in light of the events affecting the listed property trust sector in recent days.
Audio webcast Link:
http://abnnewswire.net/alnk/51PN4G1S
Listen to the Audio stream and view the announcement for Aspen Group (ASX: APZ) below.
http://abnnewswire.net/vlnk/O721YEQQ
Aspen presently has total on balance sheet debt facilities of $218 million, representing a current gearing level of 36%, well within the Group's conservative long term gearing range of 30%-40%.
The total debt position comprises core debt of $130 million which is utilised to fund the Group's commercial property portfolio. The Group's core debt is fully hedged against increases in interest rates with a weighted average expiry of three years.
The remaining $88 million of debt represents variable rate facilities used to fund acquisitions for the Group's growing funds management business. These borrowings are repaid through equity raisings for each of the underlying funds.
Excluding the short term funding to Aspen unlisted funds, the Group's long term core gearing would be 23%.
Aspen's sound business model is based on prudent gearing levels and a diversified Australian asset base. This asset base includes the commercial, residential, holiday and accommodation parks and retirement and aged care living sectors.
Aspen believes it is particularly well positioned in the present economic backdrop and looking forward to announcing a sound half year result early in 2008. The Group confirms its December quarter distribution of 3.875 cents is to be paid on or about 23 January 2008.
Contact
Angelo Del Borrello
Managing Director, Aspen Group
Phone: +61-8-9220-8400
Mobile: +61-419-335-411
www.aspengroup.com.au
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