ASX-listed Ingenia Communities Group (Ingenia) today announced the acquisition of Sheldon Caravan Park in Eight Mile Plains, 15 km south-east of the Brisbane CBD.
Ingenia is acquiring the community for $25 million, targeting a stabilised yield of over 10% and unlevered IRR of more than 12% through the reconfiguration and expansion of the current village.
Accommodation at the community presently comprises 241 park owned rental homes and 35 tourist cabins and sites.
This is the latest acquisition the seniors-living operator has undertaken since a $74 million capital raising in May. Following the announcement on 3 May, Ingenia purchased Brisbane’s suburban Durack Gardens for $25 million.
The Sheldon Caravan Park is located on 5.8 hectares of freehold land in close proximity to Westfield Garden City.
Simon Owen, CEO of Ingenia Communities, said that the recent addition of Durack Gardens and Sheldon Caravan Park significantly increased Ingenia’s presence in the tightly-held Brisbane market through the acquisition of two well-established, income producing communities with significant development and repositioning upside.
“Sheldon Caravan Park provides opportunities to enhance returns through active asset management and utilisation of current non-income producing land. Conversion of the currently modest tourism offer to rental homes, upgrading existing accommodation and the development of additional homes will grow the return while retaining long term potential for a higher and better use,” Owen said.
“We are pleased to have secured a large-scale, established community with the opportunity to expand and increase the rental return.”
Ingenia expects to settle the acquisition of the Sheldon Caravan Park at the end of this month; the Park will be Ingenia's fourth Brisbane lifestyle community.