INGENIA COMMUNITIES GROUP — Capital/Financing Update 2017

May 15, 2017

==> picture [595 x 141] intentionally omitted <==

----- Start of picture text -----

ASX / Media Release
----- End of picture text -----

16 May 2017

Ingenia acquires approved development site on NSW Coast

Highlights

• Acquisition of coastal greenfield development site at Woolgoolga, north of Coffs Harbour, now unconditional

• Off-market $7.8 million acquisition forming part of May 2017 capital raising

• Adds 196 approved development sites to key NSW Mid-North Coast cluster

• Settlement anticipated August 2017 with first sales targeted for Q4 FY18

Ingenia Communities Group (ASX: INA) today announced that the Group has exchanged unconditional contracts for the second of the acquisitions announced on 3 May 2017 in conjunction with a fully underwritten $74 million capital raising. The Group expects to settle the acquisition in August 2017 and is targeting commencement of the development at the end of 2017, with initial sales targeted for the last quarter of the 2018 financial year.

The DA approved site, currently known as Glenwood Lifestyle Resort, comprises 19.5 hectares in the seaside town of Woolgoolga, approximately 25 kilometres north of Coffs Harbour. With close proximity to the beach and a rural aspect to the west the site is located in an attractive area for retirees with Coffs Harbour Base Hospital, shopping centres and the Coffs Harbour Airport easily accessible.

Simon Owen, CEO of Ingenia Communities, said the opportunity to develop a masterplanned seniors community in the area would extend the Group’s presence in a well-established target market.

“This is an excellent addition to our NSW Mid-North Coast cluster and extends our presence in this attractive retiree location.”

Level 9, 115 Pitt St, Sydney NSW 2000, Australia

T 1300 132 946 E investor@ingeniacommunities.com.au

www.ingeniacommunities.com.au

==> picture [596 x 77] intentionally omitted <==

“The Coffs Harbour LGA has a significant and growing population aged over 50 and a median home price of over $460,000.”

“We have seen strong sales at our South West Rocks community about 25 kilometres south of Coffs Harbour and are pleased to have secured another site in this region which will allow us to continue to benefit from the attractiveness of this area for seniors as they downsize.”

“Ingenia also operates Garden Village and lifestyle communities in the area, with Ingenia South West Rocks, Ingenia Holidays White Albatross and Taloumbi and Oxley Gardens and our recently acquired BIG4 Bonny Hills located in close proximity, providing operating leverage”.

Ingenia is acquiring the DA approved site for $7.8 million and is targeting an unlevered IRR from the development of over 20%.

“With a development approval already in place we are planning to commence works at the end of this year, allowing us to target sales in the last quarter of the 2018 financial year,” Mr Owen said.

The Group continues to progress due diligence on the three remaining acquisitions announced in conjunction with the $74 million capital raising announced 3 May 2017.

ENDS

For further information please contact: Donna Byrne Group Investor Relations Manager P 02 8263 0507 M 0401 711 542

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 9, 115 Pitt St, Sydney T 1300 132 946 NSW 2000, Australia E investor@ingeniacommunities.com.au

www.ingeniacommunities.com.au

2

Overview

DEMOGRAPHIC OVERVIEW

==> picture [240 x 161] intentionally omitted <==

----- Start of picture text -----

Glenwood Lifestyle Resort
Ingenia Garden Villages Taloumbi
Ingenia Holidays White Albatross
Ingenia South West Rocks
----- End of picture text -----

• Woolgoolga is 25 minutes north of Coffs Harbour

• The Coffs Harbour LGA median house price for 2016 was $465,000

• 35% of homes in the Coffs Harbour LGA were owned outright in 2011

• The over 50s population of Coffs Harbour LGA is anticipated to grow to 48,100 by 2026.

Coffs Harbour Population Projections Population aged under 50 vs Population aged over 50

==> picture [339 x 193] intentionally omitted <==

----- Start of picture text -----

100,000
90,000
80,000
70,000 39,150 41,950
36,800
34,000
60,000 31,150
50,000
40,000
30,000
20,000 44,800 46,400 48,100 49,800 50,700
10,000
0
2016 2021 2026 2031 2036
Under 50 Over 50
----- End of picture text -----

Ingenia Garden Villages Oxley BIG4 Bonny Hills Ingenia Garden Villages Taree Ingenia Holidays Palms Oasis

Ingenia has a number of communities in this attractive area

1. ABS, INA Analysis and Resolution Research.

==> picture [720 x 37] intentionally omitted <==

Location

Glenwood Lifestyle Resort Woolworths Woolgoolga

Coffs Ex Services Club

Town Centre (Shops, IGA, Banks, Cafes)

==> picture [720 x 37] intentionally omitted <==