HTL Property announce the sale of its second land lease community in as many months. Exclusive agents Andrew Jackson, HTL Property National Director and Paul Nyholt, HTL Property Queensland Director, have successfully closed the deal on Palms Village - located in the desirable border town region of Tweed Heads; and on behalf of a private consortium for approximately $24.0m.

This sale follows the sale of the Macquarie Shores Home Village by HTL in Doyalson NSW, which was the largest single asset MHE transaction of 2024.

The Palms Village was sold via an off-market EOI sales campaign, by accessing our extensive database of caravan park and land lease community investors.

“The off-market nature of the campaign meant we had to tap into our database of park investors, and carefully curate a target list. We only reached out to around 40 parties of which a quarter ended up in the due diligence data room; and many of these conducting discreet site inspections” commented HTL’s Paul Nyholt.

“Our activity in this sector provides us with an unrivalled understanding of who is in the market, what dollar quantum they are looking to place; and the asset requirements they are seeking. This helps us close in on the most capable and suitable buyers for each asset divestment l program we work on” Nyholt added.

The sale garnered strong interest from institutional investors, syndicators, and private investors alike; ultimately selling to a private HNW purchaser that was well known to our firm - and enjoying an existing presence in the sector for a market yield of 5.35%.

Palms Village is a well presented land lease community comprising 224 occupied manufactured homes, complemented by a range of facilities including two swimming pools, multiple BBQ areas, library and billiards room, a large clubhouse, open areas for resident recreation; and a manager’s residence, spanning a 5.89 hectare freehold site.

The Property is located in the highly desirable Tweed Heads region on the NSW / QLD border. The community is beautifully positioned on the Terranora Inlet, and offers ultimate convenience for its residents, with a bus at the doorstep and a small shopping village adjacent. Tweed City, Coolangatta, Gold Coast International Airport and the vibrant Gold Coast itself are all within a 20 minute drive.

Andrew Jackson, HTL Property’s National Director of the Accommodation business, suggested the land lease sector outlook remains strong.

“The income profile of Land Lease Communities is highly secure and stable, which is attractive to a diverse range of investors; particularly when combined with large landholdings in prime locations” commented Jackson.“This is a relatively simple operating model, particularly compared to traditional retirement product, with revenue underpinned by Government rental assistance and typically nil vacancy rates in established properties; and which has resulted in continued yield compression-led asset appreciation” said Jackson.

“Despite increases in costs over recent years, this particular sector was more resilient than most other commercial property sectors; and continues to enjoy prominence on investor radars as an alternative asset class deserving of its growing mainstream attention” added Jackson.

“Comparatively, 2024 was a modest year in terms of transactional activity in the accommodation sector.

Notwithstanding, we have witnessed a strong uptick in activity in the final months of the calendar year, and which is continuing into 2025. Accordingly, we are experiencing first hand renewed levels of engagement and intent to purchase from the established participants; combined with a wave of new capital that is entering the sector” concluded Jackson.