Brookhaven Village, Bonville – Sold by HTL

HTL Property is delighted to announce the sale of the Brookhaven Village, a manufactured home estate located in Bonville in the Coffs Harbour region of Northern NSW.

The partially developed residential community comprises 44 occupied homes, with an approval for a total 99 sites across the 13-plus acre picturesque site.

The community is only moments from the world famous Bonville Golf Course and 10 minutes from the Coffs Harbour CBD.

Development profits await an incoming investor, who intends to continue to build out the remaining portion of the community with upscale affordable housing product.

Bonville on the Northern NSW coast is an ideal location for this product, with an ageing population and steadily rising median house prices.

The sale was conducted off-market, with targeted approaches to suitably qualified participants in the land lease community and caravan park sector participants.

A sale was ultimately brokered with an unlisted investment syndicate from the Sydney region for in excess of $7 million.

The private Vendors only owned this single asset in the sector; and have decided the time was right to move on.

“We have known Andrew [Jackson] of HTL Property for some years, and we follow his market updates. He had approached us with an offer which lead to the targeted process that was undertaken. We have enjoyed the journey of building this community and had no intention of selling at this stage; however we were happy with the price and deal terms negotiated” advised Vendor, Mr Thwaite.

Land Lease Communities (LLC’s), also referred to as Manufactured Home Estates (MHE’s), were originally more closely affiliated with caravan parks than retirement villages.

The sector is becoming increasingly more sophisticated as a result of the participation of real estate investment trusts; and has been further stimulated by recent activity in the sector following the introduction of new entrants. These include overseas operators and locally based syndicates; as well as high net worth investors.

As a result LLC’s are now a widely accepted form of accommodation, providing a much needed housing solution for an ageing population.

“During FY20 and FY21, as a result of the fragmented ownership nature of mature assets, there has been considerable focus from developers and institutional/corporate operators, regarding the acquisition of greenfield assets” advised HTL Property Head of Accommodation, Andrew Jackson.

“This [Brookhaven Village] asset provides an immediate income from the existing rental stream of occupied sites, whilst enabling the purchaser to access development profit on the sale of the remaining approved home sites; and  which will ultimately also add to the annuity rental income stream” added Jackson.

“We view the market for these assets as characterised by low supply and increasing demand, with established players seeking to increase their portfolios while new entrants are aggressively vying to acquire assets”. This in turn further underpins demand, and the resultant tightening of yields” Jackson concluded.

End.