Property development and management company Ingenia Communities Group (ASX: INA) is set to capitalise on a tumultuous 12 months endured by the tourism sector by splashing $53.4m to acquire holiday parks in Victoria and New South Wales to expand their holiday destinations portfolio.
The new properties acquired are BIG4 Inverloch Holiday Park in Victoria and Middle Rock Holiday Park and Village on the NSW coast.
The 8.4 hectare Inverloch property includes 430 revenue generating sites through a combination of cabins, units, glamping tents, annuals, powered and unpowered sites. As a year-round holiday destination located just two hours from Melbourne, the property also contains an indoor pool, water park, playground, camp kitchen and leisure facilities.
“This is a unique asset that benefits from an attractive location and an offer which caters to the Victorian climate,” said Ingenia CEO, Simon Owen.
“Similar to Ingenia Holidays Soldiers Point, we see the inclusion of indoor activities as a key driver of visitation outside the traditional summer peak as families seek holidays which offer ‘all weather’ activities.”
Middle Rock Holiday Park and Village will expand the cluster of holiday destinations owned by Ingenia on the NSW coast where One Mile Beach is a popular holiday destination located two hours from Sydney and 40 minutes from Newcastle.
The 7.26 hectare property is a mixed-used community which contains 213 site cabins and a residential village of 74 permanent homes with a private pool and community hall.
“With a strong presence in the region, we know the market well and are confident of our ability to maximise performance from both the holiday park operations and the land lease community,” said Owen.
“Both assets will benefit from the strong demand for domestic travel we are currently seeing across our markets and we are confident of maximising returns from these communities as we implement identified strategies for growth.”
The two sites are expected to settle before the end of 2020 and have been acquired for $53.4 million, securing further market share of the caravaning industry which in 2019 was Australia’s most popular holiday choice, with caravan parks generating $2.1 billion annually.
With their holidays division impacted significantly by the onset of a pandemic, Ingenia is set to undertake a relaunch strategy where holiday parks have bounced back quicker than other forms of tourism accommodation. The relaunch includes a marketing partnership between Ingenia, Wahu and BIG W that will target young families.