Brisbane-based affordable housing operator Eureka Group Holdings (ASX: EGH) has acquired two all-age rental communities on Victoria's east coast for a combined $14.1 million, extending a prolific acquisition spree that has now delivered 11 village purchases in 15 months.
The deals - comprising Frenchview Lifestyle Village in Grantville for $7.5 million and Paynesville Holiday Park for $6.6 million - are among a pipeline of about $90 million in acquisitions the company has under due diligence or advanced price discovery.
Frenchview comprises 103 sites and is expected to deliver an initial yield of 7.9 per cent with a target five-year internal rate of return (IRR) of 15.2 per cent.
Paynesville spans 96 sites with an initial yield of 7.6 per cent and a target five-year IRR of 17.3 per cent.
Across the two properties, Eureka is picking up 199 sites including 109 land-lease homes, 24 park-owned rentals, 19 development-ready sites and 47 short-term or annual sites.
The acquisitions increase the company's all-age rental portfolio by about 17 per cent.
“These acquisitions are consistent with Eureka’s strategy of expanding its all-age rental portfolio in regional locations supported by favourable demographic and housing market fundamentals," says Eureka Group CEO Simon Owen.
"Upon completion and development, the assets are expected to contribute more than 200 rent collecting sites to the group’s portfolio.”
The news comes three months after Eureka acquired the 141-site Nagambie Lifestyle Park in central Victoria for $11 million, a deal that marked the company's ninth all-age rental village purchase in 12 months.
Frenchview and Paynesville take the tally to 11 in just over a year, underscoring the pace at which the group is deploying capital into the sector.
Frenchview Lifestyle Village is a predominantly land-lease community located in Grantville, 100km south-east of Melbourne, while Paynesville Holiday Park is a mixed-use residential community located in the East Gippsland region..
Eureka posted a strong FY25 result, with net profit rising 52 per cent to $20.1 million on revenue of $45.8 million, up 11 per cent on the prior year.
The company completed a $70.4 million capital raise in late 2024 to fund its acquisition strategy.
Both Victorian properties sit in regions where Eureka sees sustained demand for affordable rental housing, driven by tight regional housing supply and an ageing population seeking lower-cost alternatives to metropolitan markets.
Settlement of the latest acquisitions is expected to occur over the next three weeks.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support