Aspen beefs up parks portfolio

Aspen Group has made its third holiday park acquisition in 2015, buying the Tomago Van Village in Newcastle, New South Wales, for $10.5 million.

The purchase reflects an initial yield of 9.3 per cent, excluding transaction costs.

Tomago Van Village comprises 160 sites, 136 of which are for long-term residents.

Aspen said the purchase was in line with its focus on the accommodation sector and would be funded from existing cash holdings.

The group has been steadily increasing its holiday parks portfolio since mobilising a plan to get out of commercial and residential development and into accommodation villages in 2013.

This year, Aspen spent $10.2 million on Mandurah Gardens Estate and $7.4 million acquiring the Four Lanterns Estate in south-west Sydney.

Those purchases followed the acquisition of the Big 4 Dubbo Parklands accommodation park for $10.7 million in October last year.

At the same time as beefing up its parks portfolio, Aspen has been selling down its commercial property assets, the latest being half of its industrial estate in Spearwood, which was purchased for $35 million by Pickles Auctions.

At 11:00AM, WST, Aspen shares were steady at $1.35.