In February, the nation’s only pure-play over-50s rental community provider announced its expansion into the all-ages rental market with the acquisition of Kin Kora, a mixed-use residential village and caravan park in Gladstone, 517km northwest of Brisbane.
Today (Monday, 2 June), Eureka notified the ASX it had purchased its fourth all-age rental community – Barrier Reef Tourist Park in the suburb of Edmonton in Cairns in Far North Queensland, for $3.5 million.
The park has a permit to operate 90 sites and 29 cabins. Amenities within the park include an inground swimming pool; a three-bedroom manager’s residence; camp kitchen, and laundry facility for use by the residents.
In a statement, Eureka said underutilised permanent and caravan sites present an opportunity to develop 24 one-bedroom and two-bedroom cabins for long-term rental – subject to Council approval. The five-year unlevered IRR, assuming the development of 24 long-term rental cabins, is 19.0%.
"Eureka already has an existing presence in the Cairns region, with two seniors rental living villages (located in Smithfield and Earlville) – both of which have been trading at 100% occupancy over the past 3 years and have deep wait lists," CEO Simon Owen said.
"Eureka is the market leader in the provision of seniors' rental communities across the Australia – a business we are very keen to invest in and grow – and now we are focusing on acquiring and developing a leading portfolio of all-age rental communities providing affordable, long-term and secure accommodation in a vibrant village environment.
"We have located many other all-age rental opportunities across Qld, NSW and Victoria and will be announcing further acquisitions in the coming months."
Eureka also revealed its acquisition of Burrum River Caravan Park, in Burrum Town, on Queensland's Fraser Coast, announced on 2 May, settled on 28 May.
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