Ingenia commences asset recycling program

29 October 2022

Ingenia Communities Group, has sold two Ingenia Gardens rental communities and an inland regional holiday park, consistent with the Group’s focus on divesting non-core assets and recycling capital to fund development.

Contracts have been exchanged for the sale of Ingenia Gardens Horsham (located in Western Victoria) and Ingenia Gardens Tamworth in North-West NSW, with a combined 98 residential units. The communities are
isolated in terms of the Group’s operations, with limited potential for expansion or redevelopment. The $11.8 million sale price represents a premium to the Group’s June 2022 book value of $10.54 million.
Contracts have also been exchanged for the sale of Ingenia Holidays Swan Reach for $4.15 million. The Park was acquired as part of a broader portfolio transaction and is located in the Gippsland region of Victoria,
approximately four hours South-East of Melbourne.

Simon Owen, CEO of Ingenia Communities, said the sale of the assets was consistent with the Group’s ongoing review of the portfolio and focus on recycling capital to fund development. “We continue to enhance the quality and scale of assets across the portfolio and these divestments are in line with this objective. It is pleasing to see the Gardens communities transact on capitalisation rates in the low to
mid 8% range, indicative of our view that valuation of this asset class remains mispriced.

The sale proceeds will be deployed across our growing pipeline of opportunities in the lifestyle business as we continue to grow the portfolio via the creation of sustainable, high quality communities.”
The Group anticipates further divestments over the course of the current financial year.