ASX-listed affordable housing company Aspen Group has purchased almost 14% of listed rental village operator Eureka Group Holdings for $16.1 million, in a vote of confidence in both Eureka and the rental village sector as a whole.
Aspen Group, which operates holiday parks, land lease communities and residential homes targeting households that cannot afford to pay more than $400 weekly rent or $400,000 purchase price, announced to the ASX that it had bought 41.16 million shares in Eureka, representing 13.7% of the latter’s total shares on issue.
“Both Aspen and Eureka provide quality accommodation on affordable terms. Aspen owns a diversified portfolio of residential, retirement and park communities valued at approximately $450 million. Eureka owns mainly rental apartments in retirement communities valued at approximately $185 million.
“We believe both groups are working to reduce the undersupply of affordable accommodation,” Aspen’s Board told the stock exchange.
It has been a busy year for both Aspen, which raised more than $36 million from investors in 24 hours this September, and for Eureka, which acquired three rental villages from Ingenia and announced the expansion of its Brassall, QLD, village in October.
