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Ingenia Communities Group (ASX: INA) has spent $40 million to acquire five coastal holiday parks and a lifestyle development site in Bargara, Queensland, increasing its portfolio by more than 20 per cent.
The expansion of its lifestyle and holidays business brings Ingenia's total acquisitions announced in the year to date to more than $220 million.
Acquiring the portfolio of five established coastal holiday parks sees the company, which specialises in owning and developing affordable rental and holiday accommodation, expand its presence in Victoria.
Meanwhile, the acquisition of the large ocean-front land parcel in Bargara from AEP Developments comes with approval to develop a 344-home lifestyle community. The project is called the Bargara Waters Lifestyle Resort and is around 1.5 hours' away from Ingenia's resort in Harvey Bay.
Ingenia CEO Simon Owen said it had been a busy period for the group's acquisition team as it sought to deploy equity from a $175 million capital raising completed in May last year.
"Despite a marked increase in competition for quality communities and development sites, we continue to benefit from a pipeline and relationships that have taken many years to establish," Owen said.
"The current buoyant market for domestic travel and greater awareness of the stable cash flows generated from our lifestyle communities have underlined the attractiveness of the sectors we operate in and we remain positive about the outlook from the group as we continue to grow."
After selling the land in Bargara the owner AEP Developments was left with a minor interest in the development portion of the project, leaving the company with more scope to focus on other opportunities in the pipeline.
"My team has worked very closely with Council and the local community to rezone the site and secure the necessary approvals for what will be a world-class community in one of the most beautiful parts of the country," AEP director Andre Hayek said.
"We are very sensitive to the environmental aspects of delivering an ocean front project and are pleased to have partnered with an industry leader who shares our vision of raising the bar for over 50s living in the region.
"The project will also see over 1.5 hectares of ocean front parkland dedicated to Council for the publics enjoyment and the extension of the much-loved turtle trail, one of Australia's most beautiful coastal walks."
Ingenia expects to commence development on the Bargara site in FY22, with plans to attract local residents from Bargara and the Bundaberg local government areas.
The acquisition of the portfolio of holiday and mixed-use parks includes 844 income-producing sites, increasing the group's exposure to Victoria with the addition of three parks in key tourist locations.
The portfolio also includes parks in Queensland and NSW which extends Ingenia's holiday parks offering along the East Coast of Australia.
"These assets provide access to attractive locations with opportunities for our team to add value through investment and active management," Owen said.
"The outlook for domestic travel remains very attractive and our holiday parks are benefitting with increased occupancy and rates."
Shares in Ingenia are up 1.31 per cent to $5.43 per share at 12.36pm AEST.
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