Ingenia to acquire ASX-listed Peet in A$992.3 million deal
Australian senior housing provider Ingenia Communities has agreed to buy ASX-listed residential developer Peet in a deal valued at A$992.3 million (US$713.1 million). The transaction will add 7,000 development lots to Ingenia's pipeline and create the largest ASX-listed living sector platform by dev
Australian senior housing provider Ingenia Communities has agreed to acquire ASX-listed residential property developer Peet in a deal valuing the Perth-based company at A$992.3 million (US$713.1 million). The transaction will increase the size of Ingenia’s land bank and development pipeline, according to a statement to the ASX on Wednesday.
Peet shareholders will receive A$0.68 in cash and 0.3367 Ingenia stapled securities for each Peet share, implying a value of A$2.12 each based on Ingenia’s 10-day volume-weighted average price on 21 Aug. The deal offers a 21 per cent premium to Peet’s last closing price of A$1.81 on 21 Aug, Peet said.
Ingenia, which manages a A$3 billion portfolio of land lease communities and holiday parks across Australia’s eastern seaboard, gains an additional 7,000 development lots for potential conversion to land lease communities, with an indicative end value of about A$1 billion. The combined company would be the largest ASX-listed living sector platform based on development pipeline size, the exchange filings said.
“Bringing Peet’s development pipeline together with our land lease platform creates a larger and more diversified living sector business, enhancing our ability to respond to Australia’s housing needs with a clear runway for growth over the next decade and beyond,” said Ingenia chair Shane Gannon.
Peet controls more than 26,000 lots across 37 projects with an estimated gross development value of A$11.5 billion. Ingenia has identified 5,000 to 7,000 of those lots for potential conversion to land lease communities, with 85 per cent of that land already zoned residential or under option subject to residential zoning. About 38 per cent of the lots are in Western Australia, 27 per cent in Queensland, a combined 22 per cent in Victoria and New South Wales, and 13 per cent in South Australia.
Ingenia expects earnings from the conversion of Peet’s land lots to begin in fiscal 2029 and 2030. A key part of the transaction is Peet’s Flagstone City masterplanned community south-west of Brisbane, comprising about 12,000 residential lots. A joint venture partner, Brown-Neaves Investments, will acquire 49.9 per cent of the Flagstone asset for an enterprise valuation of A$615 million, which will strengthen the merged company’s balance sheet after completion.
The transaction is expected to close in late December, subject to approvals from shareholders and the Australian Competition and Consumer Commission. Peet’s board unanimously recommended shareholders vote in favour, and its largest shareholder, Scorpio Nominees, intends to vote in favour. UBS Securities and Denison Partners are advising Ingenia, while Peet is being advised by Goldman Sachs.
