Aspen Group (ASX:APZ) announced that it has entered into conditional contracts to acquire a residential land site of approximately 11.5 hectares at 32 Sims Road, Mount Barker, South Australia under a Mortgagee in Possession sale.

Settlement is expected to occur by the end of 2020 after the new title is created.

The property adds to the group’s substantial cluster in South Australia alongside Adelaide Caravan Park, Highway 1, Coorong Quays and CREST at Woodside, and adds to the company’s local team of employees, consultants, and contractors.

The purchase price is $4.51 million, equating to approximately $40,000 per hectare, $46,000 per currently approved residential lot and $23,000 per planned lot.

“Our plan is to offer more competitively priced product whilst still generating attractive investment returns,” the company disclosed.

It aims to sell quality land lease houses from under $300,000 and residential land lots from under $100,000 to allow for house and land packages under $300,0000.

Mount Barker offers an attractive lifestyle in the Adelaide Hills only 33 kilometres and 35 minutes by car from the Adelaide city centre. It has a population of over 37,000 growing at about 3 per cent annually.

Over the next 10 years, forecast population growth in the MBGA is about 8,800 people including the over-50s cohort, which is expected to increase by 1,800 people. This growth is being well supported by federal, state, and local governments including, for instance, $50 million of funding for new aquatic and sports centres. –