20/03/2015 - 14:22

RAC buys three WA resorts

20/03/2015 - 14:22

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RAC of WA has bought three regional tourist resorts for $33.7 million, from a subsidiary of Aspen Group.

RAC of WA has bought three regional tourist resorts for $33.7 million, from a subsidiary of Aspen Group.

The properties are the Monkey Mia Dolphin Resort in Shark Bay, the Exmouth Cape Holiday Park and the Ningaloo Reef Resort in Coral Bay, with the Monkey Mia and Ningaloo deals brokered by Wayne Lawrence of Colliers International.

The purchase is designed to beef up RAC’s offerings of holiday accommodation to its 800,000-plus WA members.

RAC executive general manager brand and tourism, Tony Pickworth, said he hoped the investment would boost local tourism and encourage more Western Australians to holiday at home.

“The plan is to provide a range of consistent, reliable quality accommodation options for our members, helping to preserve the traditional WA holiday for current and future generations of Western Australians,” Mr Pickworth said.

RAC also owns the Pinnacles Holiday Park in Cervantes

The sale of the three north-west WA properties for $33.7 million is in line with the book values as at December 31 2014, and won’t be concluded for several months until operational licences are transferred, Aspen Group said.

The properties are owned by Aspen Parks Property Fund, which is 42 per cent owned by ASX-listed Aspen Group.

Selling the properties fits with the fund’s strategy to refocus its portfolio on “more traditional short stay residential accommodation properties” that don’t offer restaurants or bars.

Aspen Group chief executive Clem Salwin said the fund wastargeting new property acquisition options consistent with this core focus.

To that end, it also announced today it had bought the Australiana Holiday Park in Hervey Bay, Queensland, for $6.3 million.

It said the acquisition provided it with exposure to the Queensland coastal market, with income generation underpinned by both visitors and permanent residents.

Aspen shares were steady at $1.25 per share at close.

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