Aggressive Ingenia to commit $552 million for the acquisition of 20 communities and development sites across seven different transactions

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Hot on the heels of 19 acquisitions in FY21, publicly listed Ingenia yesterday announced it had acquired or is in the final stage of exclusive due diligence for 20 additional communities and land sites.

The acquisitions will add 2,955 income producing sites and 856 development sites to Ingenia, expanding its portfolio by approximately 38% to approximately $1.8 billion.

Once complete, Ingenia will have 110 communities across the country. Before these acquisitions they had 35 land lease communities, 29 holiday and mixed use locations and 27 rental villages.

Included in yesterday’s contracted announcements is the Seachange portfolio in SE Queensland, purchased from the Pradella Group, comprising of six land lease communities with 693 existing sites +548 development sites. Ingenia paid $270 million.

Others reportedly bidding for Seachange included Stockland, Macquarie, GIC and Hometown.

Ingenia CEO, Simon Owen (pictured right), said: “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 of one of the group’s key markets.”

Also announced yesterday was the purchase of Caravan Parks of Australia, a portfolio of seven mixed use communities, including three located in the greater Melbourne area and the balance in regional areas after the New South Wales border. Ingenia paid $110 million and cited that the purchase accelerates their move into Victoria.

They have also paid $24 million for a Brisbane land lease community development site for 160 homes, an average land plot price of $150,000.

Currently under exclusive due diligence are three lifestyle communities and two holiday parks in NSW and VIC, and a partially commenced lifestyle community in Queensland with the purchase value of $148 million.

After building and settling 370 homes in FY 21, Ingenia is targeting 475 settlements in FY22, including 50 from the Seachange purchase.

Owen says: “We seek to deliver 1800 to 2000 new homes settlements over the next three years.”

To fund the purchases Ingenia will go to existing eligible security holders to raise approximate $475 million, issuing new securities at a 6% discount to the last closing price of $6.51 share.

Owen was appointed CEO in 2009 to the ING Community Living Fund, when it had no land lease communities or holiday parks and was valued at $14 million. With these acquisitions flowing through, it will approach a $2.7 billion valuation.