Ingenia moves on Eighth Gate Capital – ten land lease communities captured

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Simon Owen’s ASX-listed Ingenia has entered into an agreement with Eighth Gate Capital Management to acquire their six unlisted funds with $140 million in assets under management, made up of 10 land lease communities.

It delivers Ingenia 1,603 income producing sites plus a 163-site greenfield community, predominantly across NSW and VIC. The makeup is 759 permanent homes and 844 holiday sites.

The properties operate under the Allswell Communities brand.

Ingenia will acquire the business and commits to co-invest in each of the funds to demonstrate commitment and ‘buy-in’ with existing investors. All up Ingenia is committing approximately $17 million.

The deal increases its lifestyle income producing sites under management by 26%. They estimate funds management, asset management and development management fees of $2 million per annum plus last right of refusal to buy the assets.

Eighth Gate was established in 2013 by Nick Bonifant; he is joining Ingenia. Interestingly, he co-founded in one of Australia’s most successful not-for-profit organisations, Youngcare which supports users with disabilities, and was on their board until recently.

At the same time Ingenia informed the market that it settled 336 new homes in FY19, at the top end of their expectations.