Retirement village operator Ingenia Communities Group has won positive support from investors for its planned $89.1 million of capital raising, with the institutional component already oversubscribed, reporting by Data Room has found.
The company announced the capital raising a day earlier, to fund the acquisition of three lifestyle parks for $55m and further deals. It has a further pipeline of 14 acquisition opportunities under active assessment across New South Wales State and southeast Queensland.
The raising comprises an institutional placement for up to $45.3 million and a one-for-seven non-renounceable rights issue for up to $43.8 million, according to the term sheet. The company is keen to deploy the funds raised within the next five months.
The institutional component is believed to be at least twice oversubscribed, with the retail part expected to be supported as well, a source close to the company said.
Strong demand comes from both existing and offshore investors who like to get exposure to the lifestyle parks business, the source said.
Australia’s aging population has been underpinning investor interest in aged care and healthcare related assets, while the nation’s property market is running on multi-year highs on the back of low interest rates.