Highlights:
- Divestment of majority of the portfolio (five assets) - Ingenia to retain a minority stake and management rights
- Immediately releases net cash of $41 million for redeployment in growth opportunities
- Proceeds to fund further growth in Ingenia’s lifestyle communities business
Ingenia Communities Group (INA) today announced it had exchanged contracts for the sale of the majority of the Group’s Deferred Management Fee (DMF) portfolio.
Ingenia has agreed all terms with Forum Partners, a global real estate investment management firm with US$4.5 billion under management, for the transfer of the majority of the Group’s DMF assets into a new vehicle, to be owned jointly by Forum and Ingenia. Forum, who acquired Ingenia’s New Zealand student accommodation portfolio in 2014, has significant investments in the Australia, New Zealand and the Asia Pacific region. The five communities being divested represent approximately 82% of the DMF portfolio value (at 30 June 2016). The price represents an 11.7% discount to the 30 June book value (after stock monetisation).
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