Eureka Group has purchased two Ingenia Gardens rental retirement villages in regional NSW and Victoria for $11.8 million.
The villages, at Tamworth in NSW and Horsham in Victoria, have 98 units between them and were sold for $6.7 million and $5.1 million respectively as part of an Ingenia asset recycling program.
Murray Boyte, Executive Chairman of Eureka (above), said the purchase – as well as the expansion of its existing rental village in Brassall, Queensland – will increase the company’s portfolio to 47 assets worth a total of $189 million.
“The acquisitions and development plans announced today are aligned with Eureka’s strategic objective to be the most trusted, scaled provider of rental retirement communities in Australia.
“The assets being acquired are located in Eureka growth markets of Tamworth and Horsham with excellent core community links and networks,” he said.
According to Simon Owen, CEO of Ingenia Communities (pictured), the sale of the two villages is part of Ingenia’s efforts to review its portfolio and fund further developments.
“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,” he said.
Ingenia is also selling its Swan Reach holiday park in Gippsland, Victoria.
