Perth-based commercial property investor Aspen Group Ltd's Aspen Parks Property Fund has acquired eight caravan parks in South Australia, Victoria and New South Wales for a combined $54.6 million, the company has announced.
Perth-based commercial property investor Aspen Group Ltd's Aspen Parks Property Fund has acquired eight caravan parks in South Australia, Victoria and New South Wales for a combined $54.6 million, the company has announced.
The full text of a company announcement is pasted below
Aspen Group (ASX:APZ) is pleased to announce the acquisition of eight parks for its unlisted Aspen Parks Property Fund (Aspen Parks), lifting the Fund's property portfolio to $218 million.
The acquisitions comprise the Myall Grove Caravan Park, located at Roxby Downs, South Australia for $11.5 million (excluding costs), and a seven park portfolio in Victoria/NSW for $43.1 million (excluding costs). The acquisitions bring to 26 the number of properties in Aspen Parks, diversified across five states of Australia.
Aspen Group Managing Director Mr Angelo Del Borrello said the acquisitions provide further scale to the Fund and complements the existing portfolio.
"We are delighted to have acquired such diverse assets which provide the Fund with a good mix of permanent and tourist sites across several locations," said Mr Del Borrello.
The Myall Grove park at Roxby Downs comprises 264 sites, providing largely permanent and semi-permanent accommodation for workers at the nearby Olympic Dam mine, one of Australia's largest mine sites and owned by BHP Billiton. The strong demand for accommodation in the town underpins the high level of occupancy at the park resulting in a sound yield from Myall Grove. The potential for expansion at Olympic Dam provides an opportunity to enhance the park's yield in future years. The acquisition was settled on 16 October 2007.
The Victoria/NSW park portfolio is a family operated concern. The seven parks to be acquired are located in the towns of Mildura, Echuca, Geelong and Ebden in Victoria, and Moama in New South Wales. The portfolio caters for regular tourists and includes a sizeable percentage of annuals, or tenant owned cabins, resulting in a high level of regular income. The portfolio complements the strong park network Aspen Parks has developed in Victoria and Southern New South Wales. The portfolio is presently under contract with settlement expected in November 2007.
Mr Del Borrello said, "These new acquisitions will further enhance the unique nature of the Fund and the strong brand Aspen Parks has created in the sector."
"Aspen Parks has been an outstanding success since its inception in June 2005, with an average annual total shareholder return of over 19% in the three years to 30 June 2007," he said.
Aspen Parks remains open to new investment with the current Offer Document available from the company webpage.
