Impairments push Aspen in the red
Property investment and funds management company Aspen Group has reported an $81.8 million loss, citing impairments and losses on assets sold or held for sale in its first half.
The company also announced this morning Aspen Parks Property Fund (APPF) - a fund managed by Aspen Group - is raising $39.9 million.
Aspen Group, which holds a 12.5 per cent interest in APPF, intends to subscribe for its full entitlement of about $5 million.
Speaking on its results, Aspen Group chief executive Clem Salwin said it was part of the company's transition as it focussed on "value for money accommodation".
Aspen sold the undeveloped portion of its Dunsborough Lakes estate to WA developer Wallis Property in June to refocus on the accommodation sector.
Aspen purchased Dunsborough Lakes for $93.68 million in 2005.
It was also forced to write down the value of its Spearwood Industrial Estate by $14 million in June.
"Most of (our) development assets have been sold or contracted for sale," Mr Salwin said.
"The greater part of the commercial portfolio has been sold. Debt levels have been significantly reduced and our debt facility has been simplified into a single, lower cost facility.
"As we move into financial year 2015, our focus is to finalise the exit from the remaining non-core assets, and deliver on the value creation opportunities provided by our position in the accommodation sector."
Its shares were down 1 cent to $1.25 a share in early trade.
