Canada Pension Plan Investment Board (CPP Investments) and Australian alternative asset manager HMC Capital have increased their shareholdings in Ingenia Communities, a listed provider of lifestyle and holiday accommodation in Australia.
US-based investor Sun Communities, which bought into Ingenia in 2018 for A$58m (€35m), sold its 10.25% stake on the open market for A$163m.
Ingenia told the Australian Securities Exchange that CPP Investments, which bought some of Sun Communities’ shares, had increased its voting power from 5.03% to 6.12%.
HMC Capital Partners Fund 1 had previously acquired Ingenia shares and acquired a further parcel of shares from Sun to take its stake to 6.535%.
“Ingenia appeals to us because it provides exposure to compelling demographic tailwinds, including a growing and ageing population,” said Victoria Hardie, managing director at HMC Capital Partners.
“The land-lease sector is underpenetrated in Australia, offering a significant opportunity for growth and the ability to generate both attractive development returns and stable, [consumer price index] linked rental cash flows.”
Ingenia is a developer and operator of over-55’s lifestyle communities, land-lease communities and holiday parks.
The HMC Capital fund told investors: “Ingenia has a significant development pipeline of new communities and expansions, providing an embedded path to continued growth in earnings.”
The company also operates waterfront holiday parks along the east coast of Australia.
“The segment is performing strongly on the back of ongoing demand for domestic travel option as cost-of-living pressures build,” HMC Capital investors. “We have commenced engagement with the Ingenia team and look forward to ongoing engagement as an active shareholder to unlock value for fund investors.”