The Aspen Group-backed Aspen Parks Property Fund has added the Harrington Holiday Park on the NSW north coast to its portfolio, in a transaction worth $8.4 million.
The property comprises 321 cabin and caravan sites, and is expected to generate an earnings yield of 12 per cent.
Harrington Holiday Park is leased to caravan park operator Big 4, while there are 25 years remaining on the lease.
“The purchase of Harrington Holiday Park is in line with APPF’s strategy to focus on increasing the level of income from well-located properties that complement the existing portfolio,” Aspen said in a statement to the ASX.
“There is also potential, subject to relevant approvals, for further redevelopment of the park to include permanent residential, which would assist in meeting accommodation needs in this popular retiree region.”
The acquisition will be funded through the APPF’s $39.9 million entitlement offer, which concluded last week.
Aspen Group has a 40 per cent stake in APPF, following the capital raising last week.
Meanwhile, Aspen also announced today it had completed settlement of the sale of an industrial property in Melbourne’s Noble Park, initially flagged in August.
Net proceeds of the sale totalled $20.8 million.
Aspen Group shares closed trade today up 1.6 per cent, at 126.5 cents.
