Australian’s are slowly pulling down their masks to embrace a new normal in the wake of the pandemic. Travel, at least domestically, is returning to pre-covid levels, a welcome change for those working in and around one of the hardest hit industries. Amongst those relieved companies is Ingenia Communities (ASX: INA).
The Company is welcoming the return of tourism and has today announced a further expansion which will see five new coastal holiday parks added to their portfolio.
Additionally, Ingenia has also acquired a large ocean facing piece of land in Queensland with approval for a 344 home lifestyle community to be built on it. The site, which will be entirely developed by Ingenia, will offer expansive facilities with building set to commence in FY22. The development is expected to attract both local and interstate buyers alike due to its prime coastal location, just outside of Bundaberg, Queensland. The primary target market for this development are those aged between 50 and 74 years. The median house price in the region was $400,000 in 2020.
Simon Owen, CEO of the Company said “the acquisition adds another large-scale community to our lifestyle portfolio, providing ongoing growth in our rental cash flows as our growing development pipeline is progressed.”
The acquisition of five new holiday parks adds another 844 income producing sites to Ingenia’s already extensive tourism portfolio, increasing the portfolio by over 20%. This acquisition includes three Victorian holiday parks, further bolstering the Company’s presence in the state and cementing them as a truly national brand.
Owen deems the “outlook for domestic travel remains very attractive and our holiday parks are benefiting with increased occupancy and rates.”
The acquisitions were funded by equity from their May 2020 capital raising. The $220 million spend is aligned with the Company’s strategy to grow and diversify their business which continues to target revenue growth of 15 to 20% for the 2021 financial year.