- Ingenia Communities is raising over $130 million to buy six new blocks of land across Queensland and New South Wales
- The cash will be raised through an entitlement offer and a share placement
- The assets in question include three already-built lifestyle communities, with room for expansion across the board
- Ingenia shares are in a trading halt today, frozen at $4.05 apiece since market close on Tuesday, October 15
Property group Ingenia Communities is raising over $130 million to buy six new assets across Queensland and New South Wales.
The cash will be raised mostly through a two-for-17 entitlement offer to existing shareholders, with new shares on offer for $3.93 each — a discount of three per cent to Ingenia’s last close of $4.05 per share.
A share placement is also in the works to raise $21.3 million of the total $131.1 million.
The property assets in question include three already-developed lifestyle communities which, according to Ingenia, will add 540 income-generating sites to the company’s portfolio. With these sites come 60 development sites as well.
This means once the purchase is complete, Ingenia’s lifestyle portfolio will be made up of over 8500 income-producing sites, with 97 per cent of the portfolio in coastal and metropolitan markets.
Ingenia CEO Simon Owen said today’s purchases are all part of the company’s focus on building “asset clusters” in key metro and coastal areas.
“The acquisitions announced today confirm Ingenia’s position as a sector leader in lifestyle communities,” Simon said.
“Our pipeline is supported by a dedicated acquisitions team which is continuing to progress a mix of yielding and growth opportunities and we are confident of our ability to execute on further transactions to deliver future growth,” he said.
The total price of the new assets comes to roughly $102.7 million, They include a Brisbane metro community with 150 existing sites, a NSW community with roughly 190 homes, and a South East QLD community with roughly 200 homes.
Three expansion land blocks are also a part of the purchase.
Today’s entitlement offer is both fully underwritten and non-renounceable.
Ingenia shares are in a trading halt today, frozen at $4.05 apiece since market close on Tuesday, October 15. Ingenia’s market cap is valued at $961 million.