Ingenia Raising Capital for new JV Communities
Ingenia Communities Group announced this week an expansion of the Ingenia & Sun Communties joint venture with the acquisition of 6 assets along with a $130M capital raising.
The capital raising will comprise a 2 for 17 accelerated non-renounceable pro rata entitlement offer to existing security holders to raise $109.8m and an institutional placement (the Placement) to raise $21.3m.
The majority of the funds raised will be used to grow the Group’s lifestyle and holidays portfolio through the acquisition of six assets, including three established communities, with a total purchase price of approximately A$102.7 million.
The acquisitions enhance Ingenia’s strategic portfolio weighting to the east coast of Australia, leveraging existing operations. On completion of the acquisitions, Ingenia’s lifestyle portfolio will include over 8,500 income producing sites with 97% of the portfolio (by value) in coastal and metropolitan markets.
A further $18.4 million is expected to be deployed on growth opportunities identified for Ingenia’s balance sheet and the Joint Venture with Sun Communities. Ingenia is assessing a further twelve land parcels and the Group’s pipeline of existing communities continues to be strong, with approximately 20 assets at various stages of negotiation and assessment.
The Equity Raising is fully underwritten by Citigroup Global Markets Australia Pty Limited, Goldman Sachs Australia Pty Ltd and Moelis Australia Advisory Pty Limited. New securities issued under both the Entitlement Offer and Placement the will be issued at $3.93 per security (Issue Price).
The Issue Price represents a:
• 3.0% discount to the last closing price of $4.05 on 15 October 2019
• 3.5% discount to the 5-day volume weighted average price (VWAP) of $4.07 on 15 October 2019
• 2.6% discount to the Theoretical Ex-Rights Price of $4.04