Ingenia reveals why it’s in talks with Peet
Australia’s $12 billion land lease sector could be poised for another major phase of growth.
Two-and-a-half months after The Australian and The Australian Financial Review first reported Ingenia Communities Group and developer Peet Limited were in negotiations, the two companies have confirmed they are in strategic discussions.
In an ASX statement authorised by Chair Shane Gannon on Friday (10 July), Ingenia said it was “in discussions with Peet Limited and potential capital partners regarding opportunities aligned with the Group’s strategic goals”.
The announcement came just hours before The Australian reported Ingenia was also in talks with Mitsubishi Estate Asia, which said in March it intended to recycle capital and focus on development opportunities in Australia’s land lease sector.
The Weekly SOURCE reported on 6 July that Mitsubishi Estate Asia had exited its investment in Stockland’s land lease business.
“The discussions are consistent with acceleration of the Group’s core strategy – growth in the land lease segment – through an extension in the land bank beyond the five-year plan and access to additional capital sources,” Ingenia said.
According to The Australian, the involvement of Mitsubishi Estate Asia – the Tokyo-based arm of the $44.5 billion Mitsubishi Estate Group – could support an acquisition of Perth-based Peet valued at more than $865 million.
Peet also confirmed the discussions in an ASX statement, saying it remains engaged in a strategic review of the business.
“It is engaged in discussions with Ingenia Communities Group regarding potential corporate opportunities,” the company said.
Ingenia said the proposed transaction would strengthen securityholder value by increasing scale, expanding exposure to Australia’s growing demand for affordable housing and improving financial flexibility.
One of Australia’s largest owners, operators and developers of land lease communities, over-50s communities, all-age rental communities and holiday parks, Ingenia has made the land lease sector the key driver of its growth strategy.
Peet is one of Australia’s largest residential developers, with masterplanned communities across the country, giving it a substantial land bank that could significantly accelerate Ingenia’s expansion if a transaction proceeds.
Ingenia stressed the discussions remain confidential and are at an early stage.
“There is no certainty that these discussions will result in any transaction,” the company said.
The company has not identified the potential capital partners involved and said it would keep the market informed should the discussions result in a transaction requiring disclosure.
