Eureka Group Holdings Limited (ASX:EGH) Acquires Second All-Age Rental Village
Acquisition Details
Eureka Group Holdings Limited (ASX:EGH) has executed binding contracts to acquire Tuggerah Shores Home Village located in Tuggerawong on the NSW Central Coast. The residential park comprises three manufactured housing estate homes, 62 long-term rental sites, and seven short-term campsites, all consistently trading at 100% occupancy with a deep waiting list.
Financial Overview
The acquisition was made for $8.25 million, offering an initial yield of 8.6%. The property is situated on a 5.2-hectare landholding, predominantly bushland, which results in low ongoing maintenance requirements. This marks the third acquisition funded from Eureka’s successful $70.4 million capital raising.
Future Plans
Eureka plans to refurbish or replace caravans and cabins at Tuggerah Shores over the coming years. The company expects to settle the acquisition by 31 March 2025 and is conducting due diligence on multiple other all-age rental villages.
Executive Comments
Chief Executive Officer Simon Owen stated, “The Central Coast of New South Wales boasts a population of 362,500 people making it the third most populated region in New South Wales, and the tenth in Australia. Tuggerah Shores presents an excellent opportunity for Eureka to step into this high growth market.” Owen added, “Demand for affordable all age rental accommodation in Australia remains high and will stay that way for the foreseeable future. Eureka has multiple other all-age rental villages under exclusive due diligence.”
Motley Fool contributor Lauren Surplice 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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