Residential Land Lease Community portfolio set to gain significant investor interest

4 January 2024

A collection of two Victorian Residential Land Lease Communities is expected to gain notable investor traction due to the rare nature of the offerings. The sale marks the first-time standalone assets within the sector have been offered to market since the sale of the Sunny Sands Residential Village in Inverloch occurred during the midst of the COVID pandemic.

The same team responsible for the Inverloch sale are now marketing Enclave at Healesville and Frenchview Lifestyle Village – two highly regarded land lease communities with upside. CBRE’s Australian Healthcare and Social Infrastructure team and Hotels divisions comprising Marcello Caspani-Muto, Scott Callow, Jimmy Tat and Sandro Peluso are driving the sales campaign on behalf of Equinox Group.

Enclave at Healesville features a total of 71 dwellings across a mixture of both permanent retirement units and holiday park accommodation / tourism sites. This translates to a diversified revenue stream and near 60/40 split of operational income. Enclave also features an existing option over the adjoining site allowing for future park expansion subject to council approval.

Frenchview Lifestyle Village is a popular and well-established retirement community adjoining the Western Port Bay offering immediate bayside access. Located within Grantville the village comprises 102 dwellings with 104 potential sites.

Marcello Caspani-Muto said “These opportunities allow for immediate entry of scale into the sought after residential land lease community and short stay/holiday park markets. What makes the offerings unique is their price point which will be of appeal to a mixture of high-net-worth private investors and syndicates in additional to typical institutional grade investors. These communities are highly sought after but feature high barriers to entry for those without experience in the markets. Once established like these they represent the opportunity for high yielding and highly defensive investments. The countries ageing population and more recently rising cost of living only support the long-term viability of these communities with a future increase in future demand undeniable.”

Scott Callow said “Path parks are well regarded across the sector and have also featured consistent management and community amenity refinement. They have been impeccably managed by Equinox Group and now have a platform for long-term success and even future value add potential via existing option and council application agreements meaning much of the heavy lifting has already been done for the incoming buyer.

The two communities are being offered for sale either individually or in combination. The Expressions of Interest campaign will close on Wednesday 14 February 2024 at 2:00pm (AEDT).