Ingenia Communities Group (ASX:INA) - CEO, Simon Owen
CEO, Simon Owen
Source: Simon Owen/Twitter
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  • Ingenia Communities Group (INA) unveils an entitlement offer to current security holders in order to partially fund a $552 million purchase
  • The funds from the $475 million raise will be utilised to partially support the acquisition of 20 communities and development sites
  • New securities will be offered under the raise at a price of $6.12 per security, a six per cent discount to the previous day’s closing price of $6.51 per share on October 29, 2021
  • Ingenia has upped its FY22 forecast from three per cent to a six per cent rise in underlying earnings per share over FY21
  • Shares in Ingenia Communities Group were put in a trading halt this morning and last traded at $6.51 on Friday, October 29

Ingenia Communities Group (INA) has unveiled an entitlement offer to existing security holders in order to fund partly fund a $552 million acquisition.

The funds from the $475 million raise will be utilised to partially support the acquisition of 20 communities and development sites that have been contracted or are undergoing exclusive due diligence.

Ingenia is planning $552 million in acquisitions, including the contractual purchases of Seachange, Caravan Parks of Australia, and a lifestyle greenfield development site in metropolitan Brisbane.

The portfolio of six lifestyle communities at Seachange consists of two mature and revenue-producing sites, two half-completed sites with growth upside, and two greenfield development sites.

Ingenia’s lifestyle portfolio will be expanded by 693 additional revenue-producing sites and 548 prospective development sites, as well as an operational and development platform, extending the group’s development pipeline and capability.

Caravan Parks of Australia consists of seven mixed-use assets in Victoria and on the border with New South Wales, adding almost 1400 income-producing sites to Ingenia’s portfolio.

Ingenia will fund the purchases in part through an underwritten 1-for-4.24 expedited non-renounceable entitlement offer to current qualifying securityholders, which is expected to raise $475 million.

New securities will be offered under the raise at a price of $6.12 per security, a six per cent discount to the previous day’s closing price of $6.51 per share on October 29, 2021.

The raising will include an accelerated institutional component available to eligible institutional securityholders and a retail component open to eligible retail securityholders.

Sun Communities, the group’s largest securityholder, has agreed to fully participate in the institutional offer.

Sun Communities’ participation is not covered; nevertheless, the remainder of the equity raising is completely underwritten.

Ingenia has upped its FY22 forecast of 20 per cent to 25 per cent growth in earnings before interest and taxes and a three per cent to six per cent rise in underlying earnings per share over FY21.

CEO Simon Owen said with COVID-19 restrictions 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 1800 – 2000 new home settlements over the next three years,” he said.

Shares in Ingenia Communities Group were put in a trading halt this morning and last traded at $6.51 on Friday, October 29.

INA by the numbers
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