Eureka Group Acquires Sunset Beach Holiday Park
Key points
- Acquisition of Sunset Beach Holiday Park in Geraldton
- Purchase price of $16.8 million with a 10.0% ingoing yield
- 58 new land lease homes to be developed and sold
- Expected 17.1% target five-year unlevered IRR
Full summary
Eureka Group Holdings Limited (ASX: EGH) has executed a contract to acquire Sunset Beach Holiday Park, a combined holiday park and lifestyle village in Geraldton, Western Australia. The acquisition includes 245 sites, including a beachfront holiday park, workforce accommodation, and a partially developed land lease community. The purchase price is $16.8 million, reflecting an ingoing yield of 10.0%. Eureka plans to develop and sell 58 new land lease homes, increasing permanent sites from 43 to 104, and deliver a five-year unlevered IRR of 17.1%. Geraldton's rental market is tight, with a 1.1% vacancy rate and a median house price of $552,500.
Outlook
Eureka expects the acquisition to be immediately earnings accretive and deliver a five-year unlevered IRR of 17.1%.
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