Ingenia Adds 10 More Villages
Ingenia Communities Group has entered into an agreement with Eighth Gate Capital Management to acquire the Eighth Gate funds and asset management business, which includes 10 villages across Australia.
The transaction will add 759 permanent homes and 844 holiday sites to the Ingenia portfolio, increasing lifestyle sites under management by more than 26%.
Established in 2013, Eighth Gate has assembled approximately $140 million in assets under management through six unlisted funds, which own ten assets (1,603 income producing sites and a 163-site greenfield community). Ingenia will acquire the business and will co-invest in each of the Funds, ensuring alignment with Fund investors and access to the revenue streams generated by asset ownership and development. Ingenia expects to invest up to $17 million to acquire the business and an interest in each of the Funds.
Subject to the finalisation of conditions precedent, the acquisition of Eighth Gate and Ingenia’s co-investment in the funds is anticipated to be complete by the end of July 2019 and will be funded from existing capital sources. The funds management investment will contribute to earnings in FY20, with growth anticipated as development within the funds is progressed.