Ingenia successfully completes $475 million equity raising with retail take-up

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Ingenia CEO Simon Owen’s aggressive $552 million acquisition pipeline has been given the green light by institutional and now retail investors.

Ingenia announced to the ASX last Monday (22 November) that it had raised the $475 million it had sought to fund its expansion. The institutional component raised $350 million.

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 retail entitlement offer closed at 5pm on Wednesday, 17 November 2021, at 5pm and raised a total of $30.6 million, with retail securityholders applying for approximately 5 million securities,” said Ingenia, which began a strategic partnership with America’s Sun Communities, the world’s largest operator of manufactured home parks and recreational vehicle communities, in 2017.

“Approximately 11.6 million securities not taken up under the Retail Entitlement Offer will be allocated to the sub-committee of the Equity Raising Fund.”

Ingenia Communities’ offer price was $6.12. Its share price on Friday was $6.175. It has a market capitalisation of $2.5 billion.