November 2009

Property fund has 'strength and robust income streams'

Go-ahead Aspen Parks shakes off negative market pressures

PERTH-based Aspen Parks continues to perform well despite negative market pressures, it has been revealed.

A member of the Aspen Group, the go-ahead property fund was formed in 2004 to acquire and manage high class tourist caravan parks and resorts worth at least $150 million within a five-year time frame.

But its growth was phenomenal and the target was smashed within three years, its assets now topping $270 million and park ownership in Western Australia, South Australia, Victoria, New South Wales and Queensland.

According to the parent company's 2009 annual report just released, Aspen Parks was a "significant contributor" to the group during the financial year and continued to provide a "sound level of underlying income from its maturing and well diversified asset base".

Although it had not bought any new properties during the year, it had paid $20 million in deferred settlement of parks acquired in the previous financial year. This was made possible with a loan from the parent group
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"APPF's ongoing focus has been on enhancing existing revenue streams through active asset management and pursuing high value development activities on existing assets," the report said.

Aspen managing director Angelo Del Borrello said Aspen Parks continued to perform well, providing significant recurring fees and equity accounted profits to the group.

"The strong performance was driven by benefits now coming to fruition from previous development activity and management synergies created within the portfolio," he said.

The entire portfolio of 25 holiday properties was independently valued in March this year, with only a 3.5 percent impairment to the asset value.

Mr Del Borrello said this reflected the "strength and robust income streams" of the Aspen Parks property portfolio.

Looking ahead, the report said Aspen Parks would seek to grow revenues through initiatives aimed at maximising occupancy levels and pursuing organic development opportunities.

"Aspen remains confident on the long-term outlook for the sector as an attractive option for tourist, short stay and long term accommodation. With easing credit markets, the current economic climate is also providing opportunities for selective acquisitions that may complement the fund’s existing portfolio," it said.

Aspen Parks would seek further opportunities within its existing portfolio to provide worker accommodation similar to the Aspen Karratha Village.

Figures in the report showed that Aspen Parks recorded a profit of $2,395,000 on revenue of $67,066,000.

Total assets were $249,378,000 with liabilities of $159,688,000.

This compared with a 2008 profit of $12,130,000 on revenue of $56,296,000.

Total assets last year were $264,704,000 with liabilities of $170,819,000.

Three of Aspen Parks caravan parks featured in the recent RACV's top 101 places to stay in Victoria ballot. Boathaven Holiday Park came in fourth while Yarraby Holiday Park was voted 85th and Ashley Gardens Holiday Park 100th.

It also has two parks in the Tourist and Caravan Park Category finals of the 2009 WA Tourism Awards .... Exmouth Cape Holiday Park and Woodman Point Holiday Park.

•  The Aspen Group will hold its annual general meeting at the Duxton Hotel in St Georges Terrace, Perth, on November 19.