The Ingenia (ASX: INA) share price is rising today after the company announced its acquisition of five coastal holiday parks.
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The Ingenia share price is up 2.08% to $5.09 per share.
Ingenia is an Australian property group that owns, operates and develops a portfolio of lifestyle and holiday communities, with an adjacency in the rental market.
Ingenia’s recent holiday acquisitions
Ingenia’s decision to purchase another 5 coastal parks comes at a boom time for the Australian domestic tourism industry when outgoing travel bans have seen domestic demand for Australian holiday attractions surge.
The company has also acquired a large ocean-front land parcel in Bargara, Queensland with approval for a 344-home lifestyle community. This will be 100% Ingenia owned.
The combined purchase price of all 5 coastal parks and greenfield site is $40 million, which the company says offers “a combination of immediate earnings accretion and approved development”.
Ingenia’s new holiday park purchase increases its holiday park portfolio by more than 20% and adds 844 cabins, sites and annuals.
What Ingenia management said
Ingenia CEO Simon Owen said the group’s acquisition team has had a busy period, with more than $220 million spent on acquisitions year-to-date.
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.
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 for the group as we continue to grow.
A $1.7 billion market capitalisation company, Ingenia’s communities are located throughout Australia, primarily along the eastern seaboard states of Queensland, New South Wales and Victoria, where the majority of Australia’s population lives and tourism occurs.
Ingenia also operates in the managed funds space after acquiring Eight Gate Capital Management in 2019. Eight Gate is a funds and asset management business, which comprises lifestyle communities and holiday parks that operate under the Allswell Communities brand.
Interestingly, the company was formerly related to the international ING banking conglomerate. It was called ING Real Estate Community Living Group and traded on the ASX under the ticker code IFL. However, Ingenia Communities Group emerged in 2012, following the internalisation of ING management.
Ingenia share price snapshot
The Ingenia share price has risen by 7.3% over the past month and is up 9.5% since 2021 began. It’s also up more than 50% over the past 12 months.
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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.