Villages valued at $8M in 2009, now sold for net value at $49.9M

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It may be in America but it tells three stories. Simon Owen and Tony Massaro at ING have achieved pre GFC sale values for the sale of ING’s remaining US villages for US$173M, realising net cash for ING of $49.9M. This compares to the 2009 value of approximately $8M for their village holdings.
Why is this important? For a number of reasons. First, it shows the value of occupancy. When Owen as CEO and Massaro as US chief took control of the assets they had 80% occupancy. They have since grown that to 95%+ while maintaining margins. This allowed them to attract several suitors to buy.
The second is freeing up cash. Owen is leading the internalisation of the management of ING – which is due to be voted on by unit holders on 31 May – he now has considerably reduced debt plus a 2.1 cents uplift in the unit values. He can now start acquiring villages – a fresh concept for the sector.
Third: the stock price of ING on the ASX has risen from 13 cents in December to 20 cents today – that’s a 54% rise in 5 months. It has been a long time since the retirement sector has seen such support.
To win the US pre GFC values Massaro made 6 extended US sojourns to New York to guide the bidders.
The interesting point is that both Owen and Massaro are amongst the few corporate pre GFC veterans in the sector. The deal is a good omen for the future.

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