A coastal manufactured housing estate in south-east Victoria has been sold for a record yield after an "unsurprisingly" strong response from the market. 

The final sale price for the residential village reflected a net yield of circa 5.6 per cent (excluding a manager’s wage), bettering the previous mark set at a return of 6.22 per cent 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.

At a glance: 

• A coastal manufactured housing estate in south-east Victoria has been sold at a yield of 5.6 per cent, setting a new benchmark for the sector.
• Stage one of Sunny Sand Residential Village was constructed in 2005.
• The transaction was brokered by CBRE’s Healthcare & Social Infrastructure team of Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto.

Mr Twelftree said while yields within the competitive social infrastructure space had sharpened significantly since 2017, the going market yield or return for an established park hovered between the ranges 6.75-8.5 per cent. 

“The volume of response the team received over the course of the campaign was unsurprisingly significant," he said.

"There is limited quality grade investment stock on the Australian market at present – however, significant levels of capital remain.

Source: CBRE

“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 its age."

Marcello Caspani-Muto said the MHE sector continued to grow in popularity, so much so that today it was 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," he said.

“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.” 

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