This article is from the Australian Property Journal archive
INGENIA is tapping investors for $475 million for its acquisitions of the Seachange and Caravan Parks of Australia portfolios in one of the year’s largest REIT raisings so far, as the holiday parks and retirement villages operator looks towards to a rebound in domestic tourism.
As well as the portfolio purchases, Ingenia said it has a further $148 million of acquisitions under offer or in due diligence, including three lifestyle communities and two holiday parks in Victoria and New South Wales, and a partially commenced lifestyle community in Queensland, giving it $552 million of acquisitions in play.
Ingenia will partially fund these through an underwritten 1 for 4.24 accelerated non-renounceable entitlement offer issued at $6.12 per security, at a 6.0% discount to the last closing price.
The group’s largest shareholder, Sun Communities, has committed to fully participate in the offer on a non-underwritten basis while the balance of the raising will be fully underwritten.
The Seachange portfolio of six lifestyle communities comprises two fully mature and income-producing sites, two partially completed sites with development upside and two greenfield development sites. It will add 693 income-producing sites and a further 548 potential development sites to Ingenia’s lifestyle portfolio.
Caravan Parks of Australia comprises seven mixed-use assets in Victoria and on the border with New South Wales, and will add more than 1,400 income-producing sites to Ingenia’s portfolio. The acquisition is immediately accretive to earnings and provides a mix of rental income from permanent, annual and tourism sites.
“While government restrictions and supply chain challenges constrain near term ability to capitalise on demand, sales momentum for new homes remains strong, partially driven by heightened demand for sea change/tree change locations,” the company said, adding that it is targeting new home settlements of 425-plus in FY22, excluding the Seachange portfolio, and acceleration of development.
Ingenia also provided FY22 guidance of growth in EBIT of 20% to 25% and underlying earnings per security growth of 3% to 6% relative to FY21.
Ingenia’s CEO Simon Owen said the acquisitions are “transformative” for Ingenia.
“With COVID-19 restrictions finally beginning to ease the outlook for the business is incredibly positive. The transaction adds 20 communities and development sites to the portfolio, giving Ingenia significant reach in our key markets and enhancing our development capacity as we seek to deliver 1,800 – 2,000 new home settlements over the next three years.”
“Assets of the quality of Seachange rarely come to market. It provides Ingenia with a portfolio of six premium lifestyle communities with significant development upside to drive multi years of growth.”
“Seachange represents a new premium brand for Ingenia in the growth corridor of South East Queensland, and integrates a highly-regarded, experienced management team, building development capacity in one of the group’s key markets.
“We are also excited to significantly expand our platform and presence in Victoria via the acquisition of Caravan Parks of Australia. The portfolio is expected to provide stable permanent and annual rental income with upside from tourism operations.”
