Another Park Sale by HTL.
An established Mixed-Use Caravan Park, located on the highly sought-after NSW Central Coast has sold to a Sydney syndicate after a spirited off-market sale campaign.
HTL Property is excited to announce the sale of the Tuggerah Shores Caravan Park, sold via an off-market Expression of Interest Campaign.
Specialist agents Andrew Jackson and James Carrick targeted a qualified group of purchasers via their material database of investors; with the property ultimately selling for $5.6 million. The sale price analysis indicates a sharp yield at 7.09%.
“All select parties invited to participate in the campaign, and particularly new entrants to the asset class, showed heightened levels of interest reflecting a positive outlook for the tourism industry; as well as an appreciation for the resilience of income in a mixed-use caravan park application” advised HTL Property National Accommodation Director, Andrew Jackson.
“This has never been more-so the case, and is particularly pleasing when considering the tumultuous trading period faced by all accommodation providers when dealing with the challenges posed by the pandemic” Jackson commented.
Tuggerah Shores [Caravan Park] was long-held for over 23 years by private investors, Gary and Maria Catto; who together owned and operated the mixed-use park. The purchaser, a Sydney based investment syndicate, plans to continue operating the park business under their own management model.
The incoming investment syndicate was particularly attracted to the semi permanent nature of the accommodation, in addition to the surplus land that may provide expansion opportunities in the future.
The property is located on the highly sought after NSW Central Coast, where there exists a very strong demand for affordable retirement living.
“Residential Land Lease Communities (RLLCs), or manufactured home estates have caught the attention of institutional and private investors alike over the past two years due to the stability of income provided via site fees” Jackson added.
“At the core, RLLCs are an owner-occupied product and as we have seen across Australia, housing continues to rise in price at unprecedented rates. Affordable housing, especially in desirable locations within proximity to essential amenities is becoming a serious problem and RLLCs are emerging as a win-win solution for both the landowner and occupier” offered Jackson.