Acquisition of Hillside Garden Village

• Acquisition of 200-site Hillside Garden Village in Mount Richon, Perth
• Purchase price of $22.15 million with 8.4% initial yield and 15% 5-year IRR
• Over 87% of site revenues secured by long-term rental income to seniors

Eureka Group Holdings Limited (ASX: EGH) has executed contracts to acquire the Hillside Garden Village, a residential home village located in Mount Richon, Perth. The village comprises 200 sites, including 145 resident-owned land-lease homes, 46 resident-owned caravan homes, 6 short-term caravan sites, and 3 motel rooms. The purchase price is $22.15 million, with an ingoing yield of 8.4% and a five-year IRR of 15.0%. Over 87% of the site revenues are secured by long-term rental income, principally to seniors on government pensions and rent assistance. The 9.1-hectare freehold site has approvals in place to immediately add a further four units, and vacant expansion land to build an additional 23 rental units (subject to Council approval). The acquisition represents Eureka's largest single-village acquisition to date and follows the company's October 2024 capital raise, through which it has invested $73.5 million in acquiring eight communities and adding 828 income-producing sites, increasing its portfolio size by 29%. Eureka's CEO, Simon Owen, commented that Western Australia is an important market for the company, with its Seniors Rental Living villages operating at full occupancy with waitlists, and that Hillside is the perfect acquisition to launch its all-age rental model in Western Australia.