The total purchase price of $10.2 million reflects an initial yield of 9.5%, excluding acquisition costs.
Koala Shores is a tourist park consisting of 142 sites, including 34 tourist cabins.
The property is a combination of freehold, long leasehold and crown licence comprising 6.5 hectares.
Aspen currently owns five holiday and accommodation parks across Australia.
Located about 40 kilometres north of the Newcastle CBD and a two hour drive from Sydney, Koala Shores extends Aspen’s ownership footprint on the New South Wales central coast.
The property is expected to continue generating an attractive yield in the future and produce strong and stable cash flows.
The acquisition of Koala Shores is immediately accretive to earnings.
The acquisition will be funded from the existing cash holdings of Aspen Group, with settlement scheduled to occur in early 2017.
The company is considering other acquisition targets as well, to expand its market presence and identify new and attractive sources of returns.
Story by ProactiveInvestors