Investment Matters

Ingenia Communities sold from the equity portfolio

Ingenia Communities has been completely sold from client equity portfolios. 

Ingenia became an investment in Jun-12, when ING Real Estate Community Living (ILF) became Ingenia, and ING exited its interest in ILF. 

First Samuel participated in subsequent capital raisings (principally for expansion into the Manufactured Home Estate retirement segment) in Jun-13, Oct-13 and Oct-14.  Ingenia recently announced further MHE acquisitions and an associated capital raising, which we elected not to participate in.

The decision to sell the investment was based on:

  1. valuation; and
  2. concerns about expansion into lower quality retirement and tourist accommodation, in conjunction with not being confident that the predicted financial benefits would flow through to security-holders.

The investment in Ingenia provided very strong returns for clients; an annualised return (including distributions) over the full holding period of 33.9%.