Ingenia (ASX:INA) to acquire 20 sites on $475m capital raising

Retirement and lifestyle property developer Ingenia Communities (ASX:INA) has planned to acquire 20 communities and development sites worth $552 million in total, while undertaking a $475 million equity rising.

The acquisition total of $552 million will be used across seven separate transactions, for 20 communities and developments contracted or under exclusivity or final due diligence.

The $404 million worth of contracted acquisitions will comprise two portfolios, Seachange Group and Caravan Parks of Australia. Additional acquisitions will comprise five mature assets (three lifestyle communities and two holiday parks) in NSW and Victoria and a partially commenced lifestyle community in Queensland. 

The acquisitions add 2,955 income-producing sites and 856 development sites to its platform, expanding the portfolio by approximately 38 per cent to around $1.8 billion, according to Ingenia.

Ingenia will launch a 1 for 4.24 underwritten non-renounceable entitlement offer to raise approximately $475 million, to partially fund the acquisition. New securities under the equity raising will be issued at $6.12 per security, which represents a 6 per cent discount to the last closing price of $6.51 per security last Friday.

“The equity raising provides partial funding for our near-term acquisition priorities which demonstrate Ingenia’s successful deal origination capability, as supported by our dedicated acquisitions team who continue to source high quality on-and off-market opportunities,” said CEO Simon Owen.

Ingenia expects FY22 earnings guidance (earnings before interests and taxes) to grow between 20 and 25 per cent and underlying earnings per share to grow between 3 and 6 per cent.

“With Covid-19 restrictions finally beginning to ease the outlook for the business is incredibly positive. The Transaction adds 20 communities and development sites to the portfolio, giving Ingenia significant reach in our key markets and enhancing our development capacity as we seek to deliver 1,800 – 2,000 new home settlements over the next three years.”

“The acquisitions announced today are transformative for Ingenia – building on our market leading position as an owner, operator and developer of lifestyle and holiday communities, while accelerating our strategic growth objectives via value accretive acquisition opportunities.”

Shares in Ingenia Communities (ASX:INA) are in a trading halt and last traded at $6.51.