Ingenia’s largest shareholder presses sell; JPM nabs $165m block

afr.com:

JPMorgan’s equities desk was looking for buyers for $165 million worth of Ingenia Communities Group after the market closed on Thursday, representing about 10 per cent of the company.

Ingenia CEO Simon Owen. Tamara Voninski

Shares were being offered under a variable price book-build, priced at $3.90 apiece to $4.02, which represented a 4.1 per cent to 6.9 per cent discount to Ingenia’s $4.19 last close. Fund managers were being told to bid in 2¢ increments.

A term sheet seen by Street Talk said Ingenia’s largest shareholder, Sun INA Equity LLC, would close out its position in full. The book was covered by 6.15pm, with price guidance to follow later in the evening.

It spells the end of NYSE-listed real estate investment trust Sun Communities’ five-year-long stay on Ingenia’s register.

Sun, which specialises in manufactured home and RV communities, debuted at Ingenia in 2018 with a 9.9 per cent stake, bought alongside a 50/50 joint venture for a manufactured community development program targeting the RV sector. It paid $54 million for the stake.

It is cleaning out despite the two extending their JV by seven years just two months ago. Under the partnership, Ingenia sources greenfield developments (and receives origination and service fees), both parties contribute equal capital to develop assets, and Ingenia has a right to acquire Sun’s interest in the developed community.

The JV holds the communities for five years once stabilised – meaning 95 per cent of the homes are settled.

So far, the duo has put four communities under active development and is planning to begin construction for the fifth in late 2023. They are located at Queensland’s Burpengary and NSW’s Bobs Farm, Fullerton Cove and Morisset. Ingenia assigned a