Lifestyle and retirement property developer Ingenia Communities (ASX:INA) plans to obtain 20 development sites and communities worth $552 million in total while initiating a $475 million equity rising.
Ingenia will use the $552 million between seven different transactions for 20 communities and developments contracted or under exclusivity or final due diligence.
The $404 million worth of contracted properties will comprise two portfolios, Seachange Group and Caravan Parks of Australia. Additional investments will contain five mature assets (three lifestyle communities and two holiday parks) in NSW and Victoria and an under-construction community in Queensland.
The acquisitions add 2,955 income-producing sites and 856 development sites to its platform, expanding the portfolio by approximately 38 percent 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 fund the acquisition partially. New securities under the equity raising will be issued at $6.12 per security, representing a 6 percent 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 percent and underlying earnings per share to grow between 3 and 6 percent.
“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) is in a trading halt and last traded at $6.51.