Eco Investor December 2016

Core Securities

Holiday Park Acquisitions for Aspen

Aspen Group's focus is on building a strong affordable accommodations business and re-establishing scale to its business, said chairman, Clive Appleton, at the annual general meeting; and in line with this the company has expanded its tourism portfolio with the acquisition of two new holidays parks. These are BIG4 Koala Shores Holiday Park and BIG4 Tween Waters Holiday Park, both in NSW.

Koala Shores is on the foreshore at Lemon Tree Passage near Port Stephens, about 40 kilometres north of Newcastle. The 6.5 hectare tourist park has 142 sites including 34 tourist cabins. The property is a combination of freehold, long leasehold and crown licence. The purchase price is $10.2 million. The initial yield is 9.5 per cent excluding acquisition costs and it is said to have strong and stable cashflow.


Koala Shores Holiday Park.

Aspen Group's new chief executive, Joel Cann said Koala Shores extends Aspen's footprint on the NSW Central Coast as its Tomago Van Village is only 35 kilometres away.

The acquisition will be funded from cash and should settle in early 2017. It is immediately accretive to earnings. He said Koala Shores has potential and Aspen believes it can produce higher returns through the groups' marketing and distribution platform.

BIG4 Tween Waters Holiday Park is at Merimbula on the southern NSW coast, on the beach front and a short distance from the town centre. It is a freehold tourist park with 96 sites. Facilities include 31 cabins and a new water park.

The purchase price is $6.8 million and the initial yield is 9.4 per cent excluding acquisition costs. It will be funded from existing cash with settlement scheduled for mid December in time for the peak trading season.

Its location means it can form part of a potential ownership cluster on the NSW south coast.

Mr Cann said that Koala Shores and Tween Waters have enhancement opportunities through Aspen's marketing and distribution platform.

Koala Shores and Tween Waters bring the value of Aspen's portfolio to $97 million. Aspen has no debt and cash of $23 million for further acquisitions.

It has also completed an on market share buyback program at an average price of $1.20 per security. The net asset value is $1.26 per security.

Mr Cann repeated the guidance for the first half distribution of 2.1 cents per security, and said he expects the full year distributable earnings to be over 4.5 cents per security. (ASX: APZ)


Aspen Park’s portfolio after the Koala Shores acquisition but before the Tween Waters acquisition.

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