The Ingenia Communities joint venture with US based Sun Communities has secured its fourth acquisition – a 13.5ha, DA approved greenfield site on the Sunshine Coast.
In addition, the Group has acquired Protea Village, a 60-unit seniors rental village located in Carrum Downs which forms part of Metropolitan Melbourne.
The 13.5 hectare land parcel has a development approval for a 230 home community and is to be acquired by the Sun Communities joint venture for $15.5m. The property is located approximately 110 kilometres from the Brisbane CBD within the Nambour gateway to the Sunshine Coast and is within close proximity to Ingenia Lifestyle Nature’s Edge.
With DA approval in place, home construction is expected to commence in early 2023 with the first settlements anticipated in FY24. Median house prices in Nambour and the Sunshine Coast are $480,000 and $740,000 respectively.
Simon Owen, CEO of Ingenia Communities, said he was pleased to announce the continued expansion of the Joint Venture pipeline, which has over 850 approved development sites across four projects. The Development Joint Venture has a further four projects optioned or under conditional contract, subject to development approval.
“The Sunshine Coast is an established retirement destination and a key target market for the Group. We have recently commenced the expansion of Nature’s Edge, which will provide settlements in FY22 and this opportunity further extends our sales pipeline in this attractive market.”
Ingenia will also acquire the established Protea Village, in Carrum Downs for $10m.
The community comprises 60 units, with community room, commercial kitchen and manager’s residence, and is conveniently located close to Carrum Downs Shopping Centre, medical centres, hospitals, libraries and public transport. The community is located approximately 40 kilometres south-east of the Melbourne CBD.
The acquisition further expands the Group’s Ingenia Gardens business and presence in the Victorian market, with proximity to Ingenia Holidays parks at Inverloch, Cape Paterson and Phillip Island.
Mr Owen said: “We are pleased to have secured the opportunity to expand our Ingenia Gardens business which provides stable, government backed rental cash flows. Over the last 18 months we have seen occupancy increase across this portfolio, demonstrating the resilience of cash flows from this business.”
Protea Village, which will be rebranded Ingenia Gardens Carrum Downs, currently has occupancy of 90%, which is below the average for the Group’s portfolio (currently 96%), providing opportunity to enhance returns.
The $10 million acquisition is anticipated to deliver a stabilised yield of over 9% once the Community is leased up to 96% occupancy, consistent with the balance of the Ingenia Gardens portfolio.
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