Ingenia expands with $60m modular home backing
Ingenia Communities has tapped institutional shareholders for another $60 million as it pushes the accelerator on an aggressive expansion strategy and adds another four communities to its portfolio.
The fast-growing modular home park owner announced a fully underwritten $60 million institutional placement yesterday, priced at $2.80 a security, as it looks to secure four new holdings that will add another 760 sites to its total portfolio.
By 1pm the offer had been fully subscribed, leaving joint leader managers Moelis and Morgans and adviser Petra Capital to sort through bids.
Ingenia chief executive Simon Owen describes the move as a “transformational opportunity” for the group, adding that the acquisitions will bring scale to the group in strategic areas.
“On full deployment of the capital raising we will have 30 lifestyle parks positioned in key metro and coastal markets with 4475 permanent, annual and short-term income-generating sites,” Owen says.
Included in the parcel is the 8.4ha Ocean Lake Caravan Park on the NSW south coast, a 5.1ha mixed-use park in Sydney and another mixed-use park in Hervey Bay on Queensland’s Fraser Coast. The fourth park is under advanced negotiations. Shareholders welcomed the announcement, pushing the share price almost 5c higher to $3.02 before the shares closed about 1% higher at $2.99 a share.
Ingenia last week announced that it had exceeded its manufactured homes sales target for this year as it had recorded 130 sales at the end of May.
At the time, Ingenia provided guidance for settlements, with more than 150 forecast for the next financial year.
“In our view this highlights increasing confidence in the Group’s MHE business model, and a likely strong start to fiscal 2017 given the level of contracts on hand,” Moelis analyst Hamish Perks wrote.
This article originally appeared on www.theaustralian.com.au/property.