Ingenia to raise $131 million for future acquisitions

Written on the 16 October 2019 by David Simmons

Ingenia to raise $131 million for future acquisitions

Lifestyle and holiday property group Ingenia Communities (ASX: INA) is on the precipice of further expansion following the announcement of a $131.1 million capital raise.

Once completed, Ingenia hopes to acquire six new assets, including three established lifestyle communities, which have a total purchase price of $102.7 million.

The acquisitions are part of Ingenia's strategic east coast portfolio and will leverage its existing operations.

On completion of the proposed acquisitions Ingenia's lifestyle portfolio will include over 8,500 income producing sites, with 97 per cent of the group's portfolio situated in coastal and metropolitan sites.

"The acquisitions announced today confirm Ingenia's position as a sector leader in lifestyle communities, as we continue to expand with on-strategy opportunities which are consistent with our focus on building asset clusters in key metro and coastal markets," says Ingenia CEO Simon Owen.

The complete acquisition package includes a mixed-use metro community located in Brisbane, an existing community with around 190 homes on the NSW Central Coast, and an existing community with around 200 homes in South East Queensland.

The group also intends to acquire land in the NSW North Coast with potential for 100 homes, land on the Sunshine Coast adjacent to the group's Ingenia Holidays Rivershore development, and a large site in Greenfield on the NSW Central coast to be owned as part of a joint venture with Sun Communities with potential to create a master planned community of around 400 homes.

Combined, these acquisitions include 540 income producing sites and 640 potential development sites, building the group's development pipeline to 3,873 potential homes.

Ingenia will fund the acquisitions and additional growth capital through an entitlement offer to securityholders to raise $109.8 million and a $21.3 million placement.

The equity raising is fully underwritten by Citigroup, Goldman Sachs, and Moelis Australia Advisory.

These proposed acquisitions follow a $23.25 million acquisition of the Rivershore Resort in Maroochydore.

Located on four hectares, the Rivershore Resort is a caravan and 'glamping' park complete with a water park, mini golf, and boat access to the Maroochy River.

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Author: David Simmons

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