Aspen Group announced that it has entered into a contract to acquire a partially refurbished co-living community at Cooks Hill, Newcastle, NSW under a liquidator's sale. Newcastle is NSW's 2nd largest metropolitan area and it has a very diverse economy. Cooks Hill is one of Newcastle's premium suburbs located between the CBD and coastline. This residential building is currently operated as a co-living community with 55 rooms that are suitable for singles. It is part way through a refurbishment and only about 60% occupied. The company intend to complete the refurbishment of the community areas, and combine some units and add en-suites, to enhance the accommodation offer and tenant mix. There is also the potential to add more "affordable rental housing" floorspace to the site under current planning guidelines and develop the entire site for higher and better use in future. The purchase price is $3.75 million, and settlement is expected to occur in 6 weeks. Total all-in cost after refurbishment is expected to be approximately $4.75 million, equating to $116,000 per unit (under a 41-unit scheme) and $3,167 per sqm of dwelling area. Net rental yield on cost is expected to be about 4.5-5.0% upon completion at gross rents of $175-200 per week, which is about half the rent of one- bedroom units in Cooks Hill (realestate.com.au).