Ingenia Communities : announces acquisition of five lifestyle communities to be funded by $74 million capital raising

ASX / Media Release

3 May 2017

Ingenia announces acquisition of five lifestyle communities to be funded by $74 million capital raising

Highlights

• Acquisition of four quality established communities, expanding presence in Brisbane and key coastal markets

• Expansion of development pipeline with acquisition of DA approved 196 home development site on the NSW Mid-North Coast

• Fully underwritten Institutional Placement and Accelerated Non-Renounceable Entitlement Offer to raise $74 million at $2.60 per new security to fund acquisitions and first stages of development

• Extends Ingenia's presence in attractive Brisbane market to four communities, complementing the Group's leading position in Sydney

• Enhances rental flows through the addition of 739 income generating sites and increases Ingenia's lifestyle portfolio to 36 communities

• On track to deliver on guidance of 190 new home sales and EBIT of $30 million in FY17

Ingenia Communities Group (ASX INA) today announced an Institutional Placement (the Placement) and a 1 for 11 Accelerated Non-Renounceable pro-rata Entitlement Offer (the Entitlement Offer) to existing eligible securityholders.

The Placement, which will raise $32 million and the Entitlement Offer (to raise $42 million) are fully underwritten. New securities will be issued at $2.60.

Funds raised will be allocated to the acquisition of four established communities and the acquisition and development of a DA approved greenfield site. The acquisitions will be accretive to earnings in FY18 and are forecast to settle between May and September this year (subject to the conclusion of standard due diligence enquiries). Each community is being acquired from a separate vendor.

The acquisitions enhance Ingenia's position on the East Coast of Australia, continuing growth in the Group's key coastal and metropolitan markets. On completion of the announced acquisitions, Ingenia's lifestyle portfolio will include over 5,600 income producing sites with over 90% of the portfolio (by value) in coastal and metro markets.

The lifestyle communities to be acquired include two established villages in Brisbane with

Level 9, 115 Pitt St, Sydney

NSW 2000, Australia

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significant upside through adding new homes and repositioning and reconfiguring a mixed use community with DA approved expansion land on Queensland's Capricorn Coast.

Ingenia's presence on the Mid-North Coast of NSW will also be enhanced through the addition of a premium beachfront tourist park and a fully approved development site for 196 new lifestyle homes. These assets expand Ingenia's exposure to this strongly performing market, joining the Group's Mid-North Coast cluster which includes South West Rocks, Ingenia Holidays White Albatross (both mixed use lifestyle communities) and some of the Group's best performing Garden Villages.

Combined, the acquisitions include 739 income producing sites and 313 potential development sites, building the Group's development pipeline to 2,669 homes (87% in coastal and metropolitan locations).

Ingenia CEO, Simon Owen, said the assets had been chosen from an extensive pipeline of acquisition opportunities which the Group has worked hard to establish over the last few years.

"Despite increasing competition as new participants seek to enter the lifestyle communities market, we have continued to see attractive opportunities to expand our business and secure longer term growth."

"Cognisant of the need to raise equity, we have carefully assessed our pipeline, proceeding only with the most compelling opportunities. The five assets which underpin this raising represent on-strategy acquisitions which will continue to build our presence in key markets and deliver earnings accretion as well as enhance longer term growth."

Mr Owen said the acquisitions were in line with Ingenia's focus on building asset clusters in key metro and coastal markets and would assist in increasing the Group's home settlements towards a medium term target of 350+ homes per annum from the 2019 financial year.

Ingenia confirmed that the Group was on track to deliver on guidance of 190 new home settlements and EBIT of $30 million for the 2017 financial year. The final distribution, which is expected to be 5.1 cents per security, will be declared in conjunction with the announcement of Ingenia's full year results on 22 August 2017.

Further details on the capital raising and acquisitions can be found in the Presentation lodged with the ASX today.

ENDS

For further information please contact: Donna Byrne Group Investor Relations Manager P 02 8263 0507 M 0401 711 542

Ingenia Communities Holdings Limited (ACN 154 444 925), Ingenia Communities Fund (ASRN 107 459 576) and Ingenia Communities Management Trust (ARSN 122 928 410). The Responsible Entity for each scheme is Ingenia Communities RE Limited (ACN 154 464 990) (AFSL415862).

Level 9, 115 Pitt St, Sydney

NSW 2000, Australia

T 1300 132 946

E [e-mail]

www.ingeniacommunities.com.au

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Presented by Simon Owen

3 MAY 2017

INGENIA COMMUNITIES GROUP

Acquisitions and Capital Raising

New streetscape at Ingenia Lifestyle, Bethania

Executive Summary

Ingenia has actively built a significant, high quality portfolio of lifestyle communities concentrated in key capital city and coastal locations

>Owns and operates 31 lifestyle and holiday communities - over 4,860 permanent, annual and short-term sites, with 2,350 development sites

>Eleven communities now in development mode with rapidly growing settlements and expanding margins

>On track to increase EBIT to $30 million (up 24% on FY16) for FY17

Five additional acquisitions under contract - purchase price $79.9 million

>Underpinned by two lifestyle communities in Brisbane, both offering development upside and significant value accretion

>Adds 739 permanent, annual and short-term sites - increases lifestyle income generating sites by over 15%

>Enhances development pipeline through addition of 349 development sites

>Earnings accretive in FY18 and beyond

>Demonstrates ability to originate quality transactions in tightening market

Fully underwritten Institutional Placement and Accelerated Non-Renounceable Entitlement Offer (of $74 million) to fund acquisitions and development capital

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