Eureka Group Acquires Townsville Lakes Holiday Park
Key points
- Acquisition of Townsville Lakes Holiday Park
- Purchase price of $6.75 million
- Initial yield of 9.1% and target 5-year IRR of 18.2%
- 8% increase in all-age rental portfolio
Full summary
Eureka Group Holdings Limited (ASX: EGH) has entered into binding agreements to acquire Townsville Lakes Holiday Park in North Queensland for $6.75 million. The acquisition includes 110 sites, including 26 short-term cabins and 82 short-term ensuite sites. Eureka plans to convert the short-term accommodations to long-term rentals, aiming for an unlevered IRR of over 18.2%. The purchase reflects an initial yield of 9.1% and is expected to be immediately earnings accretive. Eureka's Managing Director, Mr. Simon Owen, highlighted the strategic alignment of the acquisition with the company's goal to expand its all-age rental portfolio in regional areas with favorable housing market conditions.
Guidance
Initial yield of 9.1%, target 5-year IRR of 18.2%
Outlook
Eureka plans to convert short-term accommodations to long-term rentals, aiming for an unlevered IRR of over 18.2%.
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