CEO John Carfi said the decision to wind up its managed funds was consistent with Ingenia’s intention to refine its portfolio and simplify operations.
“The capital released will contribute toward further investment in our development activity,” said John in a statement to the ASX.
Combined, the five funds own six individual assets, with a total value of approximately $80 million, Ingenia stated. These include:
- Residences Fund No.3: Ingenia Lifestyle Coastal Palms, an over 55s community, in Shoalhaven Heads on the NSW South Coast;
- Residences Fund No.5: Ingenia Holidays Shoalhaven Heads;
- Residences Fund No.7: Ingenia Holidays Wairo Beach and Ingenia Holidays Tomakin;
- Residences Fund No.8: Ingenia Holidays Moruya, also on the NSW South Coast; and
- Residences Fund No.4: Ingenia Holidays Landsborough, a mixed-use community located on Queensland’s Sunshine Coast.
Contracts have been exchanged and the five asset sales will be settled progressively over February 2025, with the final asset anticipated to transact soon after, allowing a wind up of each of the funds in the second half of FY25.
The operator says the move will release approximately $5.5 million in capital from its co-investment in the five assets and it expects to receive performance fees aligned to individual fund performance (offset by the writedown of goodwill).
Ingenia had acquired the funds business in 2019 which in aggregate held 10 assets, across six funds. Fund 6 was exited in March 2022 when the Fund’s Federation village assets in Werribee, Sunshine and Glenroy were acquired by Ingenia, extending the Group’s land lease portfolio in Victoria.
The final asset is anticipated to be sold in the coming months.
Ingenia Communities had $2.5 billion in owned or managed property across 102 communities and a development pipeline of over 5,300 land lease home sites at the end of FY24.
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