News: Ingenia Communities buys $12M Sydney site, page-2

Recent article from the afr 27/1:
Australia’s third biggest listed retirement village operator, Ingenia Communities, has bought a lifestyle park in Sydney’s Hills district for $12 million on a yield of 8 per cent.
But it has decided to walk away from a proposed $14.7 million Canberra lifestyle park acquisition after undertaking due diligence.
Ingenia’s management team identified lifestyle parks as their main growth business because they offer affordable accommodation, low-risk development upside, some exposure to tourism via short-term sites and because there has been low level industry consolidation in this segment.
It raised $89.1 million last year in new equity from investors, benefiting from the growing appeal of the sector due to expectations that over-65s will surge to 20 per cent of the population by 2048.
To date, Ingenia has spent just over $35 million on two acquisitions – the White Albatross Holiday Park in Nambucca Heads and BIG4 Bougainvillia Holiday Park in Tewantin on the Sunshine Coast, which will settle in February. It has also conditionally agreed to spend $17 million on a lifestyle park in Brisbane and is assessing other opportunities.
Analyst like the stock, but want to see Ingenia deliver on its acquisitions.
In an October note following the capital raising announcement, Patersons analyst Martyn Jacobs said: “We would prefer to see Ingenia negotiate transactions that are earnings per share accretive on an ‘as is’ basis rather than rely on ‘synergies’ [development] to achieve value accretion.”
Other analysts say the expectation in the market is that Ingenia complete its lifestyle park acquisitions speedily – by the end of April – and focus on realising the development potential.
The market is also focused on the development and roll out of Ingenia manufactured modular homes business.
The view is that margins on this business are tracking well but investors are keen for an update on volumes and how quickly sales are occurring.