Eureka Group doubles down on Victoria with $11m acquisition of Nagambie Lifestyle Park

Eureka Group Holdings (ASX: EGH) has secured a second affordable housing village in Victoria in as many months after announcing an $11 million deal for Nagambie Lifestyle Park in the state’s north.

The acquisition, which follows the $11.7 million acquisition of acquisition of Benalla Tourist Park announced in November, builds on a diversification strategy from the company’s traditional bias towards coastal markets.

Nagambie Lifestyle Park, located in Strathbogie Shire south of Shepparton, comprises 127 sites including 75 land-lease homes, 18 park-owned rentals, 19 annual sites and 15 motel rooms.

The $11 million price paid by Eureka Group has been struck on a yield of 7.3 per cent and a target five-year internal rate of return of 15.9 per cent.

The park also has a recently expired planning permit for 26 additional sites, all of which Eureka Group says are fully serviced and ready to receive new homes.

Eureka, which expects to settle the purchase by the end of this month, has already sought to reactivate the planning permit and, subject to council approval, plans to land new homes at the park from mid-2026.

“Over the past 10 years, Nagambie has experienced strong population growth and has established itself as an attractive retirement centre within close proximity to Melbourne,” says Eureka Group CEO Simon Owen.

“With a rental vacancy rate of just 0.4 per cent, and a median house price of $650,000, Nagambie has the market fundamentals that align with Eureka’s affordable housing strategy.

“Upon final build-out of vacant sites, Eureka anticipates that Nagambie Lifestyle Park will comprise a community of 155 sites – with more than 90 per cent being long-term rental units and land-lease homes.”

The acquisition of Nagambie Lifestyle Park is the company’s ninth all-age rental village acquisition over the past year.

Traditionally, the group has focused on affordable communities for seniors, but the shift to acquiring all-age rental properties aligns with the ongoing shortage of rental accommodation nationally.

The Benalla acquisition in November was the company’s first all-age property acquired in Victoria.

The property, which was acquired on an 8 per cent yield, is a mixed-use village with 145 revenue generating sites comprising 61 land-lease homes, nine park-owned rentals, 29 tourist cabins and 46 sites and motel rooms.

At the end of October, Eureka Group operated 61 affordable living villages nationally, comprising 2,724 units and 828 all-age rental sites plus a development pipeline of more than 700 units.

While it has a presence in six states, coastal locations in Queensland dominate the group’s property portfolio by number.

Eureka Group says it currently has another $90 million in non-binding acquisitions in due diligence, with the expansion strategy supported by a $70.4 million capital raise at the end of 2024.

The company posted a bottom-line profit of $20.1 million in FY25, a 52 per cent increase aided by higher property valuations, while profit before tax was up 31 per cent to $12 million as revenue increased 11 per cent to $45.8 million.