HTL Property is pleased to bring to market Cooroy Village and Sugar Coast Village, to be offered for sale in-one-line or individually. Both assets are superbly located, one on Sunshine Coast and the other in Hervey Bay, together offering 148 well-presented homes. The popular over 50’s lifestyle villages will be offered via an Expression of Interest campaign, steered exclusively by HTL Property’s National Director, Andrew Jackson and QLD Director, Paul Nyholt.

“We are very excited about these two RLLC assets – they present a rare opportunity to acquire a highly passive and highly secure, effectively recession-proof income stream underpinned by large landholdings in prime locations. We anticipate strong interest for these assets as astute investors recognise the ever- resilient fundamentals of the RLLC sector; now accelerated by unprecedented demand for affordable housing by the retiree population" advised Andrew Jackson, HTL Property’s National Director.

Cooroy Village offers 68 well-presented homes plus a swimming pool, large community centre, BBQ area and creekside walking trails. The land lease community generates around $800k in gross rental income, which will increase as rental increases take effect. The boutique community requires minimal management and maintenance.

Sugar Coast Village comprises 80 homes complemented by a swimming pool, community building, gym, spa and sauna, BBQ area, on-site convenience store, vehicle storage area and manager’s residence. The current rent roll generates circa $40k per fortnight and is bolstered by rental income from the convenience store.

Sugar Coast Village - Image Supplied by HTL Property

Residential Land Lease Communities (RLLC) derive their income from site fees that a resident pays to occupy the site within the community (although they own their home outright). The income is secured by Residential Site Agreements which enforce weekly or fortnight payments and annual increases. The highly passive income profile, with built-in annual growth is driving strong investor demand.

“The sector is increasingly attracting a broader range of investors, which in turn is driving demand for these types of assets and is consequently compressing yields. Our recent campaigns for land lease community assets have been well received by A-REITs and corporates; through to private funds, high net worth individuals and new entrants all competing for a foothold in the sector" added HTL Property Qld Director, Paul Nyholt.

“An excellent example is our recent sale of Sunstrip Park. After a highly competitive twostaged EOI process, the property ultimately sold for over $17 million to an experienced operator seeking to expand its presence on the NSW Central Coast. The quantity and quality of the bids received for the premium residential community, which is very similar to these current offerings, spoke volumes to the heightened and ever-growing interest from the market in this sector" commented Jackson.

Both the Sunshine Coast and Hervey Bay are top lifestyle destinations in Australia, evidenced by their aged population respectively – where over 50% of the population of both LGAs is over 50 years old. The two regions attract retirees for their idyllic lifestyle, natural beauties and excellent year-round climate; as well as close proximity to amenities and major cities – Cooroy Village is just 40km from the Sunshine Coast CBD and within a 1.5 hour drive to Brisbane; while Sugar Coast Village is approximately 300km from Brisbane or just an hour’s flight.

Both Cooroy Village and Sugar Coast Village are established communities that are 100% occupied; with demand for homes driven by Australia’s largest cohort, the Baby Boomers, who are now entering their retirement years and seeking affordable housing in lifestyle locations. This is a prime time for an incoming purchaser to capitalise on the demand for retiree housing, the recent housing value growth as well as the long- term land value via the substantial, combined 7.3 hectare freehold landholding.

Another factor driving the demand for this asset class is the growing realisation that supply is limited. Currently, operating assets are very tightly held; while the pipeline for future communities is highly constrained as planning regulations are restrictive and development costs have escalated prohibitively" added Andrew Jackson.

“We are seeing strong continued demand for residential land lease community assets, combined with an undersupply of established assets in the sector, resulting in steady yield compression over the last decade,” concluded Jackson.

Cooroy Village and Sugar Coast Village, in conjunction with Traralgon Lifestyle Village in Victoria; are being offered for sale in-one-line, or individually, via an Expression of Interest campaign closing on Thursday, 5 September 2024.