2 July 2019
A decision by a leading retirement living developer to add ten sites across three States to its portfolio has confirmed the ongoing strength of the land lease community model.
Ingenia told the Australian Securities Exchange on Monday that it had entered into an agreement with a fund manager to absorb the sites across NSW, South East Queensland and Victoria. This will represent Ingenia’s first move into Victoria.
The ten sites currently contain 759 permanent homes and 844 holiday sites.
Under the land lease community model, residents purchase a dwelling and then lease the land on which the dwelling is located. The model is growing in popularity, largely due to the fact that purchasers can avoid stamp duty and may also be eligible for Commonwealth rent assistance.
The land lease community model is regarded as being particularly well-suited to early stage retirees, who want to lead an active lifestyle and have less need for care. While the model has historically been seen as a more affordable option, some villages are beginning to offer luxury, higher-priced homes.
The Ingenia deal covers four Federation Villages in Victoria, at Glenroy, Sunshine, Werribee and Ballarat. The Ballarat site has development approval for the construction of 163 new homes.
It also covers five NSW properties on the State’s South Coast, namely Coastal Palms at Shoalhaven Heads. Tall Timbers at Shoalhaven Heads, Tomago River at Tomakin, Wairo Beach at Lake Tabourie and Riverbreeze at Moruya.
The sole Queensland property covered is Landsborough Pines at Landsborough.
“The portfolio is an excellent fit with our existing assets, further extending our reach in key markets such as Victoria and the South Coast of NSW where we have been actively seeking greater scale,” said Simon Owen, CEO of Ingenia Communities.
Ingenia plans to increase the number of permanent homes at a number of the sites.
Mr Owen said Ingenia’s land lease model - which included no deferred management fee - enabled asset-rich, cash-poor Australians to free up their home equity for a more comfortable retirement fund.
“Downsizing in a land lease community provides a way for Australians with less superannuation to live comfortably in a new home they love,” Mr Owen said.
“In our lifestyle communities we provide brand new high quality, low maintenance homes in a secure environment – allowing residents more time and money to spend on things they enjoy.”
Separately, Ingenia announced it expected 2018/19 earnings growth (before interest and taxes) to be at least 15 per cent. The company was also placed as a finalist in Asia Pacific’s Eldercare Innovation Awards.
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By Mark Skelsey, News Editor at Downsizing.com.au. Email Mark at [email protected]