Eureka Group acquires two communities to continue all-age expansion

Managing Director and Chief Executive Officer Simon Owen announced in February last year that the seniors’ rental operator had moved into all-age communities.

Today (22 April) Eureka’s Chief Financial Officer and Joint Company Secretary Shiv Chetan announced to the ASX that the Group had purchased its 10th and 11th all-age communities with settlement in three weeks.

The two communities are:

• Frenchview Lifestyle Village in Grantville, 100km southeast of Melbourne. The village has 103 sites: 78 permanent manufactured homes, 19 park-owned rentals, two annuals, two undeveloped serviced sites (DA approved for homes) and two sites with new homes for sale. There is a swimming pool and community facilities.
• Paynesville Holiday Park, a mixed-use residential community in East Gippsland, 300km east of Melbourne, with 96 sites: 26 permanent manufactured homes, five park-onwed rentals, 11 short-stay tourist cabins, 20 annuals (collecting site rents), 14 powered stes, 17 undeveloped services sites (DA approved and ready for installation of prefabricated homes), and three sites with new homes for sale.

Frenchview Lifestyle Village was acquired for $7.5 million, and has a 7.9% initial yield and a 15.2% target five-year IRR. $1 million of the purchase was deferred for 12 months.

Paynesville Holiday Park was purchased for $6.6 million, with a 7.6% initial yield and 17.3% target five-year IRR and $1 million of the purchase again deferred for 12 months.

“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,” said Simon. “Upon completion and development, the assets are expected to contribute more than 200 rent collecting sitesd to the Group's portfolio.”

Eureka is continuing to progress around $90 million of acquisition opportunities currently under due diligence or advanced price discovery.