Ingenia Communities sells six assets to Eureka for $123.8M
- Ingenia Communities reportedly agreed to sell six lifestyle and mixed-use communities to Eureka Group for $123.8 million.
- Eureka launched an $80.2 million underwritten entitlement offer at 61.5 cents per share and secured an $80 million debt facility to fund the acquisition.
- The transaction allows Ingenia to reallocate capital while Eureka expands its portfolio of affordable residential communities.
Ingenia Communities (ASX:INA) has reportedly agreed to sell six lifestyle and mixed-use communities to Eureka Group (ASX:EGH) for $123.8 million.
The transaction follows Ingenia's recent announcement to acquire listed developer Peet (ASX:PPC) for nearly $1 billion in cash and scrip.
To fund the purchase, Eureka secured an $80 million debt facility from Westpac (ASX:WBC) and National Australia Bank (ASX:NAB) alongside an $80.2 million fully underwritten entitlement offer.
Major shareholder Filetron committed to contribute cash to maintain its 34.8% stake in Eureka.
Following the announcement, the Ingenia share price was unchanged at $3.60, while the share price of Eureka Group stood at $0.61.
The asset sale aligns with Ingenia's strategic move to establish a $615 million joint venture for its Flagstone City Project.
Meanwhile, Eureka continues to expand its footprint in the affordable senior living sector through targeted portfolio acquisitions.
