Ingenia (ASX:INA) share price lifts after $220 million spending spree

The Ingenia (ASX: INA) share price is rising today after the company announced its acquisition of five coastal holiday parks.

| More on:
man sitting in hammock on beach representing asx shares to buy for retirement

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Ingenia Communities Group (ASX: INA) share price is rising today, adding to already solid recent gains, after the company announced its acquired a portfolio of 5 coastal holiday parks.

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.

Ingenia background

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.

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.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »