Ingenia CEO Simon Owen is maintaining his acquisition pace of about one transaction per month with the purchase from receivers of five rental villages. 274 units at a cost of $36,000 each: $9.9M all up. Ingenia says this price is 25% of the replacement cost.
Ingenia is the largest rental village operator in Australia with 29 properties delivering 1,522 units. This includes five acquisitions in the past 12 months separate from the five just announced.
Occupancy is currently 85%. The 29 villages delivered earnings before interest and tax of $7.7M to June 30. These five new villages (three in Victoria Shepparton, Warrnambool, Mildura one in NSW Bathurst and one in Tasmania Launceston) will immediately yield 8.4%; Ingenia predicts 15.8% within three years.
They have identified that the rental market, to be stable, requires care to be delivered. In the past 12 months 291 of their 1,522 Ingenia rental units turned over due to residents moving to aged care. The company is introducing Ingenia Care Assist to extend tenure and increase occupancy and earnings.
Legal Issues
VCAT rules Lifestyle Communities’ DMF model illegal
Lifestyle Communities’ business model is under serious threat after a ruling by VCAT President Justice Ted Woodward found its exit fee structure to be illegal. The ASX-listed land lease operator, which was valued at $861.9 million and placed in...
