Selling your park

Innoviv Park Services is not an agent or a broker, however we are constantly on the lookout for leasehold and freehold park acquisition opportunities for ourselves and for  several large clients.

There are no fees payable by you, the seller, should we match you with a buyer. We simply provide the introduction after receiving some preliminary information from you – and ensure your park fits our buyers’ criteria.

What are the conditions?

Typically the operators we work with are seeking freehold or leasehold properties with:

  • Minimum turnover of around $700 000 per annum
  • Purchase price of  between $1M and $20M
  • Any location across Australia will be considered

We want to make the caravan park sale process easy for you

Our aim is to save you time, money and unnecessary headaches with a quick, clean, no fuss private sale. We can make the process a whole lot simpler for you, given our experience, large network and genuine desire to help.

That’s what makes our caravan park sale introductions so unique. You get connected to a network of ready buyers, with decades of experience managing parks, without having to pay commissions.

Get in touch today

If you’re looking for an off-market, private sale of the leasehold or freehold of your park, why not give us a call. We’ll see if we can match you with one of our existing clients.

Have you prepared yourself for an initial conversation about selling your caravan or holiday park?

Valuation of a caravan park involves the assessment of:

  • Location
  • Clientele / demand for the park
  • Terms of the lease and rental amount (for leasehold sale)
  • Condition of the park and property
  • Plant and equipment
  • Adjusted net income after addbacks (addbacks are any one off, extraordinary operational expenses affecting your net profit position in a particular year that would not be considered recurring expenses, and would normally also include expense lines such as  depreciation, bank interest etc.)
  • Any capital requirements and the potential return on the investment based on the adjusted net profit position after any addbacks

Have answers ready to the following questions when entering into initial discussions with an agent or potential purchaser:

  • Why are you selling?  Your genuine answer to this can either attract or turn off a buyer
  • How long have you been in operation?
  • 

Are you selling Freehold or Leasehold?  If you own the freehold, are you prepared to consider only selling the leasehold if it means a higher overall price?
  • What percentage is repeat business?
  • 

Does the park have a good reputation?
  • What are people saying about your park on social media?
  • Do you have sound financial records?
  Make sure these are complete, up to date and correct
  • What extras will be included in the purchase price?  For instance mowers, tools, vehicles.  A current depreciation schedule or asset listing is recommended
  • Do you have a good team of staff in place? 
A good team means the new owners can trust the park will run well during and after takeover
  • 

Is the park presented well? 
Your park should look appealing.  Make sure you complete all needed repairs, mow sites, ensure facilities are in good condition, gardens are tidy and areas around buildings are neat and clean
  • Is the live-in accommodation presented well?
  • Do you have marketing set up? 
Keep online marketing up to date including websites, social media and booking sites

Items that need to be considered and agreed upon prior to a caravan park sale include:

  • Sale Price – consider a range in which you would be comfortable
  • Fees in advance that will be required to be paid to the incoming purchaser
  • Equipment and assets included in the sale as well as any stock at valuation
  • Settlement date
  • Handover process
  • Adjustments for staff entitlements (long service leave, accrued holiday and personal leave)
  • If you own the freehold, consider if are you open to selling the leasehold as an alternative to selling the freehold

Has an agent valued your park at a lower price than you’d expected?

Should an agent values you park at a price that is not in line with your expectations, you may consider talking to us about a management license arrangement.

In this type of arrangement, Innoviv takes over the complete operation of your park for a 12-36-month period and pays you, the owner, the equivalent of a rent after all of your expenses have been paid.

If your park isn’t running as well as it could be, we can come in and apply our expertise to improve park operations, running your park as if it were our own, including taking on all the expenses and paying you an agreed amount per year for doing so. The payment is similar to a rent but at a higher rate.  Once the agreed term (12-36 months) is complete and park occupancy and income has improved, the park can then be valued again and a share of the valuation improvement is paid to us.

In a management license arrangement,  you retain full ownership of the park, however the Innoviv team look after all the income and expenses and we operate the park as if it were our own, building your business by growing revenue and improving the bottom line to help you to achieve a higher price when you do choose to list the park for sale.

Get in touch today

Why not give us a call? We’d be happy to have a discussion about how we can help you get the best price for the sale of your park.