Ingenia splashes $74M on four LLCs and new development site

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While the names of the Land Lease Communities (LLCs) remain confidential, two are in the Brisbane area and were purchased for $25M each. The third is on the Capricorn Coast in central QLD and the fourth has been revealed as the BIG4 Bonny Hills Holiday Park at Rainbow Beach on the NSW mid-north coast.

The operator has also picked up a DA approved 196-site greenfield site south of Coffs Harbour.

The acquisitions will add 739 homes and 313 potential development sites to its portfolio of 36 communities for a total of 5,606 homes and bring its development pipeline up to 2,669 homes, 87% in coastal and metropolitan markets.

Ingenia has been moving away from the DMF model in its villages in recent times. Last year it sold five villages to Forum Partners in October. It now has just three of its villages left under the DMF valued at $10M.

Instead, the developer has focused on expanding its East Coast and tourist park sites, recently paying $50M for the Cairns Coconut Holiday Resort in north QLD, one of the biggest single park purchases in Australia.

Its institutional placement is predicted to raise $32M with existing shareholders able to buy shares at a pro-rata rate of $2.60 to raise $42M.

Ingenia forecasts this will put it on track to deliver 190 new home sales and an EBITDA of $30M in FY17.

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