Nambucca Heads Park Sale by HTL Property – North Coast NSW

HTL Property is delighted to announce the sale of the Nambucca River Tourist Park and Nambucca Heads Village, sold ‘in one line’ on behalf of its client Lifestyle Villages.

The two mixed use parks were offered for sale via a publicly marketed international Expression of Interest campaign which generated 91 enquiries and 8 Offers to Purchase.

A select group of bidders were invited to participate in a second phase of the well contested sales process, which ultimately resulted in a sale in excess of $15m for the assets; and which were acquired by an unlisted fund based in Sydney.

“The short-listed parties enjoyed different frames of reference when sizing up the opportunity” advised HTL Property’s National Accommodation Director, Andrew Jackson.

“There were new entrants to the sector vying for a foothold into this tightly held market, along with traditional home manufacturing groups that had identified the opportunity to own an operating asset that they could also further improve with their own housing product” Jackson added.

The two parks comprised 205 sites in total, with development approvals in place to expand to 269 sites.

Lifestyle Villages have been active participants within both the tourist park and manufactured home park sectors for decades, with an impressive portfolio in excess of 12 park assets within their national portfolio.

The purchasers will be gearing up for what is expected to be an extraordinarily busy and rewarding summer holiday season, while simultaneously progressing the planning stages of the next phase of asset amplification; afforded by the approvals achieved.

In concert, the two parks provided around 13 hectares of freehold land enabled by strong cashflow businesses; both of which are underpinned by a passive, permanent residential rental income stream.

“The market demand for mixed use parks of this nature has increased dramatically over the last 18-24 months” commented HTL Property’s James Carrick.

“There was a period where we witnessed a genuine distinction in buyer interest between permanent residential park assets as opposed to tourist parks; however overwhelmingly the resilience that both asset types have demonstrated during the recent macro challenges posed by the pandemic, has not only heightened demand for each of these two segments, but mixed use parks more generically” Carrick advised.

“These assets have generated strong returns, even in softer economic times, due to the ongoing demand for affordable accommodation facilities. And following the rapid corporatization of the sector, and recent portfolio transactions by larger listed players, we are witnessing unheralded yield compression for the asset class” Carrick added.

“The broad market demand for these assets is simply outweighing the available supply. Add to this a domestic tourism resurgence that is delivering a veritable boon for the caravan park operators nationally, it is our submission that we don’t expect prevailing conditions to abate any time soon” concluded Jackson.

End.