Melbourne

Inverloch housing estate sets pricing record

Sunny Sand Residential Village, a coastal manufactured housing estate (MHE), has set a new pricing benchmark for the rapidly expanding Australian Social Infrastructure sector.

18 Jun 2020

Sunny Sand Residential Village, a coastal manufactured housing estate (MHE), has set a new pricing benchmark for the rapidly expanding Australian Social Infrastructure sector.

The final sale price for the residential village reflected a net yield of circa 5.6% (excluding a manager’s wage), which is a substantial record in today’s market with the previous pricing best set at a return of 6.22% in Queensland in 2019.

CBRE’s Healthcare & Social Infrastructure team of Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto were appointed to sell the property at 32 Ullathornes Road, Inverloch, on behalf of John Disipio – who has owned the facility since 2005, when it was built.

While yields within the competitive social infrastructure space have sharpened significantly since 2017, the going market yield or return for an established park hovers between the ranges 6.75-8.5%. 

Mr Twelftree said; “The volume of response the team received over the course of the campaign was unsurprisingly significant. There is limited quality grade investment stock on the Australian market at present – however, significant levels of capital remain.”

“Stage one of the residential village was constructed in 2005 and all community amenity and homes have been meticulously maintained – it really is one of the most impressive parks on the market, given it’s age,” Mr Twelftree added.

Marcello Caspani-Muto added; “The MHE sector continues to grow in popularity, so much so that today it is clearly the fastest growing segment within the country’s senior living and retirement spectrum – even with this growth in most parts of the country there remains a shortage of supply for affordable seniors’ accommodation, which is particularly an issue within Victoria.”

“Almost all operators within the space remain active for quality opportunities, reflected in an uptick in enquiry for existing communities – the current enquiry that the team is fielding for these assets is quite extraordinary.”

For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.