HTL Property Achieves Strong Sale of Residential Park Asset in the Lake Macquarie Region
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HTL Property Achieves Strong Sale of Residential Park Asset in the Lake Macquarie Region
HTL Property, has successfully sold the Sunstrip Park, a premium Residential Land Lease Community located in the highly sought-after Lake Macquarie Region. Sunstrip Park sold by Andrew Jackson, National Director of HTL Property’s Accommodation brokerage business.
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Residential Land Lease Community located in the highly sought-after Lake Macquarie Region Sunstrip Park sold HTL Property
Specialist brokerage firm HTL Property, has successfully sold the Sunstrip Park, a premium Residential Land Lease Community located in the highly sought-after Lake Macquarie Region.
The sale was brokered by Andrew Jackson, National Director of HTL Property’s Accommodation brokerage business.
The two-stage EOI process generated a number of strong first round offers, with the strongest bidding parties being short-listed and exclusively invited to participate in a second round ‘final bids’ process. This allowed the prospective purchasers to not only finalise their outstanding due diligence but also to improve their offers, as knowing they were only one of the few preferred parties generated strong competitive tension.
HTL Property was able to improve not only the pricing but notably, were able to compress the due diligence timeframe and requirements of parties considerably. This resulted in an unconditional contract being exchanged within only weeks of the first round EOI closing and receipt of initial bids.
“The ultimate sale price and yield confirmed the ongoing resilience and strength of this sector, despite the recent headwinds of interest rate escalation and rising construction costs” commented Jackson.
“The quantity and quality of the bids received for Sunstrip Park, a premium residential community speaks volumes to the heightened and ever-growing interest from the market in this rapidly evolving and virtually recession-proof sector,” said HTL Property National Director, Andrew Jackson.
Residential Land Lease Communities have evolved into a legitimate investment market and their association to caravan parks has long gone. The sector is increasingly becoming more sophisticated and in turn attracting a broader investor base that includes A-REITs and corporates through to private funds, HNW individuals, developers, offshore capital and new entrants.
Residential Land Lease Communities derive their income from site fees, that a resident pays to occupy the site within the community (although they own the home outright). This generates a highly passive, secure and stable income, as well as one that has proven to be extremely resilient and even recession proof.
“Another factor driving the demand for this asset class is the growing realisation that supply is limited. Current, operating assets are very tightly held while the pipeline for future communities is highly constrained as planning regulations are quite restrictive and take time,” added Andrew Jackson.
Sunstrip Park is premium Residential Land Lease Community operating 136 modern, manufactured homes complemented by high quality facilities including a generously sized pool, multiple BBQ areas, a recreational room and private park for exclusive resident use.
Additionally, the Park had four vacant sites which were cleared, serviced and ready for development under the current Approval to Operate, which allowed for 140 long-term sites.
The substantial 4.27ha site is located in the highly sought-after Lake Macquarie region of NSW, within a convenient 1.5hrs drive to Sydney or just under 30 minutes to Newcastle.
Property ultimately sold for over $17 million to an experienced land lease community operator seeking a presence in this region following a well contested expressions of interest sale.
“We are seeing strong demand for caravan parks and residential land lease community assets, and combined with an undersupply of established assets in the sector and continued demand has resulted in steady yield compression over the last decade,” concluded Andrew Jackson, HTL Property National Director.
Related reading:
Equinox Group Residential Land Lease Community Portfolio for sale - CBRE | Commo.
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HTL Property, has successfully sold the Sunstrip Park, a premium Residential Land Lease Community located in the highly sought-after Lake Macquarie Region. Sunstrip Park sold by Andrew Jackson, National Director of HTL Property’s Accommodation brokerage business.
