Ingenia advanced in buying three manufactured home estates for $55M

Simon Owen is about to increase Ingenia’s investment in manufactured home estates by 40% to $119 million. They are in the final stage of buying three established MHEs for $55M.
This brings Ingenia’s tally of MHE acquisitions to 18 in just 19 months – the time they have been in this market. They are now the country’s largest MHE operator targeting the permanent resident market.
They have told the investment market they are actively reviewing 80 further MHEs, with 14 under exclusive negotiation or active assessment.
To fund its growth Ingenia is issuing new script to raise $89M.
The two people at the top of Ingenia, Owen and Chairman Jim Hazel, are both retirement village veterans – so what is the MHE appeal?
In the simplest terms:
• high demand – MHEs appeal to the largest market segment that also has the least options, Over 55’s with net asset worth of less than $400,000
• fragmented, cottage industry – over 2000 MHE sites nationally with the Top 10 operators holding less than 5%
• location – most MHEs are in prime coastal or regional areas strategically located with townships having grown up around them
• instant cash flow from site rentals, often linked to Centrelink payments
• built in low cost land bank for development – see further comment
• substantially easier planning approval and timeframes
• construction speed and low cash flow impact
The three MHE acquisitions are:
White Albatross Holiday Park at Nambucca Heads (NSW) – photographed above – Price: $23 million paid over four years delivering 311 sites and 10%+ yield.
Canberra South motor Park (ACT) – Price: $14.7 million delivering 404 sites and 8%+ yield.
Brisbane park (TBC) - Price: $17 million delivering 200 sites and 8%+ yield.