Aspen Group Expands Residential Footprint with $32M Australind Acquisition

Key Highlights:

• Acquires high-quality 18ha site in Australind, WA, with potential for ~450 dwellings
• Acquisition adds 16% to Aspen’s scale, boosting total sites to ~6,400
• Share price up 4.97% to $2.96, 1-year return stands at 75.15% 

Strategic Play in WA Housing Undersupply as Aspen Secures Bunbury Asset

Aspen Group (ASX: APZ) has strengthened its position in Australia’s affordable housing and lifestyle living sector with the acquisition of a premium residential-zoned property in Australind, Western Australia, for $32.25 million. The site—originally built by Albemarle Corporation to support lithium plant expansion—will now be transformed into a blend of rental housing and lifestyle community offerings.

The 18-hectare property near Bunbury, WA’s second-largest city, represents a significant addition to Aspen’s national portfolio. The deal, announced on April 2, adds roughly 450 planned dwellings and increases Aspen’s total number of approved and planned sites by 16% to ~6,400, including ~4,125 rental dwellings.

“This acquisition offers a rare opportunity to repurpose high-quality accommodation infrastructure in a high-demand location where affordable housing is in critical shortage,” Aspen stated. The site includes 97 transportable dwellings configured into 386 furnished rooms with ensuites, a community clubhouse, over 600 car spaces, and around 10 hectares of developable land.

Repositioning Strategy Aims to Unlock Yield and Development Upside

Aspen plans to reposition the former worker accommodation into an integrated Living & Lifestyle community. The transportables will be reconfigured into approximately 130 fully self-contained 1- and 2-bedroom units, targeting average rents of $325 per week and a stabilised yield of ~6%. Aspen estimates the total repositioning cost at $23 million, including $6 million in conversion and fit-out expenses.

The spare land, already earthworked with some civil infrastructure in place, is earmarked for a 250-site lifestyle community catering to over-50s—a model that Aspen has deployed successfully elsewhere. Council and regulatory approvals are targeted within 6–12 months, with phased lease-ups and development commencements to follow.

Aspen also retains “Plan B” options, including selling or relocating transportables and undertaking full residential subdivision per the existing Structure Plan.

The move is well-timed: current listings indicate just one rental property under $400 per week in the Australind area, while Aspen’s nearby Meadowbrooke community has shown strong take-up. The Bunbury region, home to more than 200,000 people, has grown 9% in the past five years—underpinning long-term demand fundamentals.

APZ Stock Surges as Market Rewards Scale and Strategy

Investors responded positively to the announcement, with Aspen shares climbing 4.97% to $2.96 during afternoon trade. This follows a strong 12-month performance, with APZ returning +75.15% year-on-year, significantly outperforming both the real estate sector and the ASX 200.

The acquisition, alongside the recent $12.7 million Ravenswood deal, is expected to be 100% debt-funded, pushing Aspen’s pro forma gearing from 21% to 27%. However, Aspen management expects medium-term improvements in profitability and equity value, while maintaining its disciplined development exposure—just 12% of total assets on a pro forma basis.

Aspen’s market cap now sits at approximately $594 million, with 200.8 million shares on issue. The stock continues to benefit from its differentiated model—one that merges affordable housing, land-lease communities, and rental yield generation under a vertically integrated platform.

With growing demand for housing in regional growth corridors and a deep pipeline of lifestyle development projects, Aspen is well-positioned to capitalise on Australia’s evolving residential landscape.