This article is from the Australian Property Journal archive
ASX-listed Ingenia Communities Group has acquired a portfolio of six holiday communities and development sites for $102.7 million, and will tap investors to raise more than $131 million.
Combined, the acquisitions include 540 income producing sites and 640 potential development sites, taking the group’s development pipeline to 3,873 potential new homes.
The raising will comprise a two for 17 accelerated non-renounceable pro rata entitlement offer to existing security holders to raise $109.8 million, and an institutional placement to raise $21.3 million.
Three established communities make up half of the portfolio, including a 150-site mixed use metro park in Brisbane, a 190 home site on the New South Wales central coast, both with development upside, and a 200 home park in south east Queensland with expansion potential.
Also in the portfolio are a NSW north coast expansion site with potential for an additional 100 homes and adjacent to an existing lifestyle community development, and another expansion site next to Ingenia Holidays Rivershore on the Sunshine Coast for potential for 80 sites.
A greenfield site on the NSW central coast with potential for a master planned community of about 400 homes has been picked up as a 50% joint venture with New York-listed Sun Communities, Inc.
“The acquisitions enhance Ingenia’s strategic portfolio weighting to the east coast of Australia, leveraging existing operations,” Ingenia’s chief executive officer, Simon Owen said, adding that they are in line with group’s focus to expand with on-strategy opportunities through building asset clusters in key metro and coastal markets.
Ingenia’s portfolio will include over 8,500 income producing sites, with 97% of the portfolio (by value) in coastal and metropolitan markets.
In total, the balance sheet acquisitions have a combined purchase price of approximately $86.0 million, and a further $16.7 million for the joint venture with Sun Communities.
A further $18.4 million is expected to be deployed on growth opportunities identified for Ingenia’s balance sheet and the joint venture with Sun Communities. Ingenia is assessing a further 12 land parcels, and its pipeline of existing communities has about 20 assets at various stages of negotiation and assessment.
The equity raising will be fully underwritten by Citigroup, Goldman Sachs and Moelis.
New securities issued under both the entitlement offer and placement the will be issued at $3.93 per security, representing a 3.0% discount to the last closing price of $4.05.
