Sun Communities invested approximately $58 million in Ingenia stock in 2018 and last week sold out for around $165 million. Separately, they have a joint venture development agreement with Ingenia that is gaining momentum.
Sun is an $19 billion listed fund that owns, operates, or has an interest in 671 developed Manufactured Home, Recreational Vehicle Parks, and Marina properties comprising approximately 180,060 developed sites.
Ingenia is a listed $1.6 billion Sydney-based land lease, rental and holiday park operator.
Sun held about 41.8 million shares; yesterday Ingenia informed the ASX that Canada Pension Plan Investment Board has increased its voting power from 5.03% to 6.12% after buying Sun shares.
In August, Ingenia Communities Managing Director and CEO Simon Owen announced the 50/50 joint venture was being extended by seven years. Under the partnership, Ingenia sources greenfield developments (and receives origination and service fees), both parties contribute equal capital to develop assets, and Ingenia has a right to acquire Sun’s interest in the developed community.
The JV holds the communities for five years once stabilised - when 95% of the homes are settled.
Ingenia and Sun has four communities under active development and is planning to begin construction in a fifth later this yar. Ingenia assigned a $61.8 million carrying value to the portfolio.
The SOURCE: Ingenia Communities announced underlying profit of $84.7 million in FY23, with revenue up 17%.
