Caravan park market's buoyant trading conditions enables raft of sales
The caravan park market continues to capitalise on buoyant trading conditions with our specialist caravan and holiday park teams agreeing in excess of £40M worth of sales over the past nine months.
The sales, which have been agreed on 24 parks across the UK, include all types of caravan parks, from ‘lifestyle’ touring and camping parks to large static and residential mobile home parks.
The biggest sale saw Maguires Country Parks acquire a 43-acre, 240 pitch site in Bamburgh, Northumberland with further potential. Other sales include Hook Farm Caravan and Camping Park in Dorset, offered for sale at £2.5m and Penlan Holiday Village in Carmarthenshire, marketed with a guide price of £1.1m.
Adam Burkinshaw, partner in our York office commented, “Caravan parks have always been seen as very resilient businesses capable of surviving ups and downs in the economy. The unexpected shock of Brexit appears to have had a positive effect as the fall in the value of sterling has made UK holidays even better value for money. The majority of holiday parks reported improved trading figures in 2016, with only a partial impact from the effect of Brexit, as most holidays had already been booked by the time the referendum was held.
“It is reasonable to expect these buoyant trading conditions to continue, which will further underpin the value of parks and demand for well performing businesses.
“We are also finding banks are keen to back these businesses, supporting both new entrants to the market and existing owners who are looking to expand. On the back of our success over the past few months there remains a pent up demand from well-funded applicants which provides a good opportunity for any park owners looking to sell to capitalise on the strong market conditions. ”