Ingenia Communities Group · ASX:INA
Ingenia Communities — Merger or Acquisition (September 2014)
37 slides from Ingenia Communities's merger presentation, Sep 24, 2014
Slide 1: Acquisitions and Capital Raising
Ingenia Communities Group Acquisitions and Capital Raising For personal use only 24 September 2014 White Albatross Holiday Park, Nambucca Heads NSW
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer For personal use only This presentation was prepared by Ingenia Communities Holdings Limited (ACN 154 444 925) and Ingenia Communities RE Limited (ACN 154 464 990) as responsible entity for Ingenia Communities Fund (ARSN 107 459 576) and Ingenia Communities Manag
Slide 3: Overview
Overview For personal use only White Albatross Holiday Park, Nambucca Heads NSW
Slide 4: Executive summary
Executive summary For personal use only Ingenia is the largest owner, operator and developer of Lifestyle and Tourist Parks in NSW > Owns and operates 15 Lifestyle Parks across NSW – over 2,000 permanent and short-term sites, with 917+ development sites (including conversion of existing sites) > Eig
Slide 5: Transaction highlights
Transaction highlights For personal use only Enhances capacity for growth and returns to securityholders Acquisition of three quality, accretive and on-strategy Lifestyle Parks with substantial development and repositioning upside Significantly increases development pipeline – adds over 380 develo
Slide 6: Overview of the capital raising
Overview of the capital raising For personal use only ˃ Institutional Placement to raise up to $45.3 million and 1 for 7 Entitlement Offer to raise up to $43.8 million – to raise a total of up to $89.1 million Offer ˃ The Placement and Entitlement Offer will be undertaken at an Offer Price of $0.45
Slide 7: Acquisitions
Acquisitions For personal use only White Albatross Holiday Park, Nambucca Heads NSW p7
Slide 8: Use of funds – Acquisition of White Albatross Holiday Park
Use of funds – Acquisition of White Albatross Holiday Park For personal use only > White Albatross is a 5.2 hectare lifestyle and tourist park located at Nambucca Heads, NSW > Situated within the Group’s North Coast Cluster, which includes the Drifters Village in Kingscliff and rental villages in Co
Slide 9: Expanding in North Coast NSW cluster
Expanding in North Coast NSW cluster Market characteristics For personal use only Market characteristics* The estimated over 50s population for the Nambucca Shire by 2031 is 11,650 persons, representing 56.42% of the population Current median home price for Nambucca Shire is $339,000 Drifters Ho
Slide 10: Use of funds – Acquisition of Canberra South Motor Park
Use of funds – Acquisition of Canberra South Motor Park For personal use only > Canberra South Motor Park is a tourist and lifestyle park located on the edge of Fyshwick in the southern Canberra suburb of Symonston, ACT > The park sits on a 10.3 hectare site with frontages to Canberra Avenue and the
Slide 11: Expanding in South West NSW/ACT cluster
Expanding in South West NSW/ACT cluster Market characteristics For personal use only South West NSW/ACT Cluster Market characteristics* The ACT population is forecast to double by 2062 By 2031, the estimated over 50s population is forecast to be 158,906 persons (32.2% of the total population), r
Slide 12: Use of funds – Acquisition of Brisbane Park
Use of funds – Acquisition of 'Confidential Park' (Brisbane) For personal use only Acquisition metrics > ‘Confidential Park’ is a large partially developed community Purchase price $17.0m located ~30 km south of the Brisbane CBD Ingoing yield >8% Forecast unlevered IRR >15% > The Park is Ingenia’s f
Slide 13: Establishing Lifestyle Parks in SE QLD cluster
Establishing Lifestyle Parks in SE QLD cluster Market characteristics For personal use only Market characteristics* Parks being assessed SE QLD projected to record most of QLD’s growth, accounting for 67.5% of the State’s total population increase over 25 years to 2031 The over 50s population of
Slide 14: Portfolio Update
Portfolio Update For personal use only Drifters Holiday Village, Kingscliff, NSW p14
Slide 15: Portfolio update
Portfolio update Diversified Australian portfolio dominated by cash yielding assets For personal use only Today, Ingenia has Australian 60 communities and growing Rental Deferred Management 34 villages Fee > 1,801 units 8 villages > In all States except SA > 831 units > Focus on occupancy > WA, QLD
Slide 16: Ingenia's growth focus - Lifestyle Parks
Active Lifestyle Estates (Lifestyle Parks) Ingenia’s growth focus - Lifestyle Parks For personal use only > High yielding assets with low risk, capital light development > Finite pool of valuable land zoned for lifestyle and tourist parks in tightly held markets > Fragmented ownership offering consi
Slide 17: Lifestyle Parks strategy
Lifestyle Parks strategy For personal use only Abundance of opportunities for highly accretive growth > Over $119 million invested in establishing the leading Lifestyle Parks position in NSW > Highly fragmented with key participants owning < 5% of the market – considerable opportunity for large scal
Slide 18: Acquisition of parks in months - Retain room for growth
Acquisition of 18 parks in 19 months - Retain room for growth For personal use only All acquisitions to date have met stringent investment threshold – forecast unlevered IRR 12-15% Lifestyle Parks Property Location Acquired Permanent Sites Short Term Sites Potential Development sites North Coast, NS
Slide 19: Lifestyle Parks development cycle
Lifestyle Parks development cycle For personal use only Low-risk, capital light, accelerated development cycle compared to traditional retirement business models Home Home Order Construction trucked to On-site ready for Placed at factory Village Installation sale 6 - 8 weeks 3 - 4 weeks 9-12 weeks p
Slide 20: Rolling out development
Rolling out development For personal use only Driving value with buybacks of old homes to free up development sites > Approximately 35 buybacks across ten parks executed to date to free up valuable sites for development and create new precincts within existing parks > Buyback costs have generally ra
Slide 21: Meeting the demand
Meeting the demand For personal use only Tailored marketing strategies in place to target permanent and tourism clientele Marketing to Permanent Homebuyers > Display homes particularly in new markets is key to driving sales > Dedicated Project Sales Managers responsible for each market cluster > Cro
Slide 22: Non-core asset sales
Non-core asset sales For personal use only NZ Students Portfolio, Wellington NZ ˃ Sale announced 5 September 2014 ˃ Sale price NZ$49.4 million (in line with book value) ˃ Subject to tenant approvals, settlement anticipated to occur end 2014 ˃ Circa AU$15 million in sale proceeds available for reinve
Slide 23: Capital Raising
Capital Raising For personal use only New home being installed on site p23
Slide 24: Details of the Offer
Details of the Offer For personal use only Offer Details > Capital raising of up to 198.0m securities to raise up to $89.1m Use of > Proceeds from the Capital Raising will be fully allocated to funding Lifestyle Park acquisitions (circa $55m in acquisitions under Proceeds conditional contract) > Pla
Slide 25: Use of funds
Use of funds Quality Lifestyle Park acquisitions For personal use only ˃ Three ‘on strategy’ Lifestyle Parks acquisitions under conditional contract • Combined purchase price circa $55 million (915 permanent and short term sites) in identified NSW and SE QLD clusters • Acquisitions range from $15 mi
Slide 26: Key financial metrics
Key financial metrics Capacity remains for further growth For personal use only Pro Forma Capital Identified NZ Remaining Fully (June 14)1 Raising Acquisitions Sale Acquisitions Deployed (3 assets) Net Australian investment 304.4 - 59.3 - 64.2 427.9 property ($m) 1 Total Australian assets ($m) 515.1
Slide 27: Use of funds: Further acquisitions well progressed
Use of funds Further acquisitions well progressed For personal use only > Significant pipeline of ‘on-strategy’ acquisitions under exclusivity, due diligence or actively being assessed > Acquisition of additional assets anticipated to be announced early calendar year 2015 • Located in identified NSW
Slide 28: Indicative timetable
Indicative timetable For personal use only Timetable Date Institutional Placement and Institutional Entitlement Offer Announcement of the Placement and Entitlement Offer Wednesday 24 September 2014 Trading resumes on an ex-Entitlement Offer basis Friday 26 September 2014 Record Date for determining
Slide 29: Investment Highlights
Investment Highlights For personal use only p29
Slide 30: Investment highlights
Investment highlights For personal use only ˃ Focusing on bolt-on acquisitions in existing markets with development upside ˃ Looking to create asset clusters with buoyant housing and employment markets, Acquisition compelling ageing demographics and limited competition pipeline ˃ Stringently assesse
Slide 31: Appendices
Appendices For personal use only Ettalong Beach Holiday Village, Ettalong Beach NSW p31
Slide 32: Competitor landscape – Lifestyle Parks
Appendix 1 Competitor landscape – Lifestyle Parks For personal use only Major operators represent <5% of market opportunity Major Operators No. of parks Locations Strategy Active Lifestyle 15 NSW Acquire existing lifestyle and tourism parks with low risk capital light Estates (Ingenia) development u
Slide 33: Appendix 2: Foreign jurisdictions – Singapore
Appendix 2: Foreign jurisdictions For personal use only Singapore The offer or invitation which is the subject of this presentation is only allowed to be made to the persons set out herein. This presentation has not been, and will not be, registered as a prospectus in Singapore with the Monetary Aut
Slide 34: Appendix 2: Foreign jurisdictions – Hong Kong
Appendix 2: Foreign jurisdictions For personal use only Hong Kong WARNING: This presentation has not been, and will not be, authorized by any regulatory authority in Hong Kong. No action has been taken in Hong Kong to authorize this presentation or to permit the distribution of this presentation or
Slide 35: Appendix 3: Risk factors
Appendix 3: Risk factors For personal use only This section discusses some of the key risks associated with an investment in Ingenia. A number of risks and uncertainties may adversely affect the operating and financial performance or position of Ingenia and in turn affect the value of Ingenia securi
Slide 36: Appendix 3: Risk factors – Specific risks
Appendix 3: Risk factors For personal use only Specific Risks Business strategy Ingenia’s business strategy is focused on growing the Group’s cash yielding rental portfolio through acquisition, risk development and increasing occupancy. Ingenia’s future growth is dependent on the successful executio
Slide 37: Appendix 3: Risk factors – Specific risks
Appendix 3: Risk factors For personal use only Specific Risks Homeowner The DMF model requires the new homeowners to purchase existing homes in Ingenia’s portfolio on the exit of existing turnover homeowners before Ingenia can realise its DMF receipts. This causes the cashflows of the DMF business t
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