Aspen Group, which operates seven land lease communities, has called an emergency general meeting to vote on a deal to buy Marina Hindmarsh Island Fund, the owner of the master planned community Coorang Quays, with about 3,000 homes/sites, at Hindmarsh Island, 83km south of Adelaide, SA.
The company announced on 1 March, seven minutes after posting a $23 million profit, its proposal to take ownership of Marina Hindmarsh Island Fund. It has managed the community under a Delegation Agreement, since early 2019.
Coorang Quays includes Alexandrina Cove Lifestyle Village (pictured), which has approval for 160 sites in total (28 developed). Aspen Group said in March it expects to sell at least six sites per year at an average price of $350,000 with land rent of $160 per week. The first four homes of Stage Two under the new land lease model have been built, with three already sold.
Aspen Group’s Joint CEOs John Carter and David Dixon (L-R), both directors and shareholders of Marina Hindmarsh Island Fund, are unable to vote on the recommendations to the EGM on 26 May. If the transaction is voted for, Mr Carter will receive $2,448,000 new Aspen Group Securities and Mr Dixon will get $1, 244,000 new Aspen Group Securities.
Aspen Group’s shares have fallen 1.72% over the year to date.
