Financial backing for Ingenia’s acquisition pipeline shows confidence in lifestyle community model

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ASX-listed Ingenia Communities has successfully completed its institutional component of its plan to raise $475 million to help fund its aggressive $552 million acquisition pipeline.

A total of $370 million was raised by the institutional component. Approximately 92% of eligible entitlements were taken up by existing Ingenia securityholders. The group’s largest shareholder Sun Communities fully participated.

“The success of the institutional component of the entitlement offer indicates ongoing support from our investors and market support for our strategy,” said Ingenia Communities CEO Simon Owen (pictured).

Ingenia Communities’ yesterday launched its retail component of the entitlement offer of – 1 for 4.24 accelerated non-renounceable entitlements to existing eligible security holders. The offer price is $6.12.

After buying 19 sites in FY21, Ingenia has acquired or is in the final stage of exclusive due diligence for 20 additional communities and land sites. It is paying $270 million for the Seachange portfolio of lifestyle communities – two established, two partially sold and two development sites – in southeast Queensland.

Ingenia competed with Stockland, Macquarie, GIC and Hometown for the portfolio that comprises 693 existing sites and 548 development sites and its management team. Its other purchases were Caravan Parks of Australia’s seven mixed-use community portfolio of more than 1,400 permanent, annual and tourism sites in Victoria and on the border with NSW, for which it paid $110 million, and a $24 million greenfield site in metropolitan Brisbane with capacity for a 160-home community.

The acquisitions lifted Ingenia’s development pipeline to 6,278 sites, on par with Stockland. Ingenia also said it planned to accelerate its development and settle between 1,800 and 2,000 new homes over the next three years.