Ingenia (ASX:INA) has purchased two immediately earnings-accretive Manufactured Home Estates (MHE) in Mudgee, New South Wales, for $11.2 million.
The purchases will be funded from the $21.2 million institutional placement conducted in June.
The Mudgee Valley Tourist Park will be acquired for $4 million, which has an 8.8% trailing yield, and an unlevered internal rate of return exceeding 20%.
The second purchase is the Mudgee Tourist and Van Resort acquired for $7.2 million, boasting a trailing yield of 9.3% (increasing to 11% in its first year of operations) and an unlevered IRR exceeding 15%.
Mudgee offers a buoyant local housing market, strong employment growth and a vibrant local economy underpinned by resources and agriculture. The median house price in Mudgee is currently $389,000, which has grown at a rate of 9.2% over the past five years.
Ingenia is continuing to assess further accretive opportunities in the MHE sector and expects to announce further strategic acquisitions in the near future.
With its existing MHE portfolio, INA will now operate a total of 1105 homes, development sites and tourist dwellings.
Ingenia is successfully focusing on a niche investment space offering stable yield and strong capital growth opportunities.
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