Eureka Group Holdings Limited (ASX:EGH) Expands into All-Age Rental with Gladstone Acquisition
Acquisition Details
Eureka Group Holdings Limited (ASX:EGH) has executed binding contracts to acquire a mixed-use residential home village and caravan park in Gladstone, Queensland for $4.5 million, achieving an initial yield of 9.2%. The acquisition is expected to settle on 13 March 2025.
Expansion into All-Age Rental
With declining home ownership and a shortage of affordable rental homes, Eureka is expanding into the all-age rental sector. The company plans to convert 28 caravan sites into rental villas at a cost of approximately $5 million, targeting a stabilised yield of over 12%.
Executive Comments
CEO Simon Owen stated, “The Kin Kora village acquisition in Gladstone breaks new ground for Eureka as we expand into the all-age rental market. The housing crisis continues to impact communities across Australia, including in regional areas. Kin Kora presents as an excellent opportunity for Eureka to meet the growing demand for affordable low-cost housing to service a range of markets including essential service workers, active retirees, and tradespeople. I expect this will be the first of many similar park acquisitions for Eureka. We currently have multiple parks under due diligence, and a long pipeline of opportunities that we have under review and expect to quickly grow this sector in parallel with the expansion of our existing seniors’ affordable rental portfolio.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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