Eureka Group Holdings has made its biggest move since Simon Owen took the helm, paying $22.5 million for Hillside Garden Village in Mount Richon, 30km southeast of Perth’s CBD.

The 9.1ha property – long regarded as Perth’s best caravan park – includes 145 resident-owned land lease homes, 46 resident-owned caravan homes, six short-term caravan sites and three motel rooms. It will now become Eureka’s first all-age rental community in Western Australia.

“Over 87% of site revenues are secured by long-term rental income, principally to seniors on government pensions and rental assistance,” the Board told the ASX.

Approvals are already in place to add four new units, with potential for another 23 one- and two-bedroom rental cabins subject to council approval. The acquisition provides an ingoing yield of 8.4% and a five-year growth rate of 15%, according to Eureka.

Capital raise drives growth

Hillside is the eighth purchase funded from Eureka’s $70.4 million capital raising in October 2024. The operator has now invested $73.5 million across eight communities, adding 828 income-producing sites and expanding its portfolio by 29%.

The group has also boosted its development pipeline, now sitting at 728 sites after securing an additional 304 development opportunities.

Eureka entered Western Australia’s Over 55s rental market in 2023 with the $44 million acquisition of six Ingenia Gardens rental villages across Perth, Mandurah, Bunbury and Albany – a total of 321 occupied units.

With the Hillside acquisition, Eureka now controls more than 500 rental units in WA, alongside a pipeline of expansion opportunities.

“Our Seniors Rental Living Villages are operating at full occupancy with waitlists,” Managing Director and CEO Simon Owen said. “Hillside is a well-presented, large-scale village offering strong, immediate, high-quality rental earnings and future development potential. It is the perfect acquisition to launch our all-age rental model in Western Australia.”