The parks provide stable revenues for the Fund, which are typically generated through:
- Sales of static caravans and pitches to new owners and a flow of upgrade sales to existing owners
- Annual site fees from owners of static caravans
- Holiday rentals of lodges, static caravans and touring and tenting pitches
- On-site food, beverage and leisure operation revenues
We believe that by offering best-in-class facilities we can maximise the income revenues for the parks. Where necessary, we will improve and develop the infrastructure and leisure facilities to ensure that a park is offering the best possible amenities, which we believe will lead to an increase in rental and sales revenues, as well as an increase in income from food, beverage and leisure operations.
Many of the parks we acquire into the portfolio have the potential for substantial increases in their capital value by transforming pitches designated for touring caravans and tents into static caravan and lodge pitches.
Caravans enjoy low levels of planning restrictions and investment costs are a fraction of those for residential dwellings. In planning terms, the definition of a caravan is also very broad. All the structures pictured below are classed as caravans and have a life expectancy running into 40-60 years.
Unlike the vast majority of parks in the UK, which are family-owned and lack the capital required to maximise their potential, we are able to invest, without the use of gearing, to transform parks with touring caravan and tenting pitches into more valuable static developments. Where appropriate, we will also invest in the addition of new central leisure facilities, or the upgrading of existing services, which can also increase the capital value of a park.
These upgrades will also lead to an increase in income as static caravan and lodge rental rates will automatically be substantially higher than for tents and touring caravans.