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INGENIA COMMUNITIES GROUP — Capital/Financing Update 2014
Sep 23, 2014
65125_rns_2014-09-23_fb4a46e2-a435-4da1-a773-830bacd28863.pdf
Capital/Financing Update
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24 September 2014
Ingenia announces further Lifestyle Park acquisitions and $89.1 million capital raising
Highlights :
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Conditional acquisition of three earnings accretive, cash yielding Lifestyle Parks (circa $55 million) in identified growth clusters
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Institutional Placement and Accelerated Non-Renounceable Entitlement Offer to raise up to $89.1 million at $0.45 per new security to fund Lifestyle Parks acquisitions
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Announced acquisitions to add 915 permanent and short term sites and significantly expand development pipeline
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Increases investment in Lifestyle Parks by over 40%
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Establishes Lifestyle Parks business in South East Queensland market
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Additional ‘on-strategy’ acquisitions under exclusivity or in active assessment – full deployment of capital and associated debt will double Lifestyle Parks business
Ingenia Communities Group (ASX:INA) (“Ingenia”) today announced an Institutional Placement (the Placement) and 1 for 7 Accelerated Non-Renounceable pro-rata Entitlement Offer (the Entitlement Offer) to existing eligible securityholders to raise up to $89.1 million.
The Institutional Placement will raise up to $45.3 million, with the 1 for 7 Accelerated NonRenounceable Entitlement Issue to raise up to $43.8 million. Securities will be issued at $0.45 per new security.
Funds raised will be allocated to the acquisition of the three Lifestyle Parks described below and a further pipeline of acquisitions under exclusivity and active assessment.
Ingenia has executed conditional contracts to acquire three parks for a total price of approximately $55 million. White Albatross Holiday Park (Mid-North Coast NSW), Canberra South Motor Park (ACT) and an unnamed park in Brisbane (‘Confidential Park’) will add 915 permanent and short term sites and over 380 development sites to Ingenia’s Lifestyle Parks portfolio. The parks are immediately earnings accretive, cash yielding assets, with forecast unlevered IRRs of 12 - 15%.
Level 5, 151 Castlereagh St, Sydney NSW 2000, Australia
T 1300 132 946 E [email protected]
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Further accretive opportunities with target trailing yields of more than 8% and unlevered IRRs of 12-15% across New South Wales and South East Queensland are under exclusivity or active assessment. The Group is also assessing several DA approved greenfield sites in New South Wales.
Ingenia CEO, Simon Owen, said the acquisitions would accelerate the growth of the Lifestyle Parks portfolio in line with the Group’s strategy, with each asset having significant repositioning or development upside.
“On full deployment of the capital raising and associated debt the size of the Group’s Lifestyle Parks business will be doubled and the development pipeline substantially increased.”
“We have already invested $119 million in establishing a leading Lifestyle Parks position in New South Wales and the latest acquisitions will consolidate our foothold in the market and expand our portfolio to over 2,800 sites. Significantly, we are also establishing our Lifestyle Parks business in the attractive South East Queensland market,” Mr Owen said.
The announced acquisitions, which are subject to final due diligence and Board approval, will add over 380 sites to the future development pipeline, securing further low-risk organic growth in the medium term.
Mr Owen said the announced acquisitions were in line with Ingenia’s focus on asset clusters in tightly held key markets in South West NSW/ACT, the North Coast of New South Wales and South East Queensland.
“We target areas with buoyant housing and employment markets, compelling ageing demographics and limited competition,” Mr Owen said.
Following the capital raising Ingenia retains funding capacity for further accretive acquisitions.
Further details on the acquisitions and capital raising can be found in the Presentation lodged with ASX today.
ENDS
For further information please contact Simon Owen Donna Byrne Chief Executive Officer Acting Investor Relations and Marketing Manager P 02 8263 0501 P 02 8263 0507 M 0412 389 339 M 0401 711 542 [email protected] [email protected]
Ingenia Communities Holdings Limited (ACN 154 444 925), Ingenia Communities Fund (ASRN 107 459 576) and Ingenia Communities Management Trust (ARSN 122 928 410). The Responsible Entity for each scheme is Ingenia Communities RE Limited (ACN 154 464 990) (AFSL415862).
Level 5, 151 Castlereagh St, T 1300 132 946 Sydney NSW 2000, Australia E [email protected]
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