Eureka Group Holdings Ltd Acquires NSW Living Portfolio
Key points
- Acquisition of six lifestyle and mixed-use communities for $123.8m
- Expected to increase FY27 underlying EPS by at least 4.2 cps
- Fully underwritten $80.2m equity raising to partially fund the acquisition
Full summary
Eureka Group Holdings Ltd has entered into a contract with Ingenia Communities Group to acquire six lifestyle and mixed-use communities in NSW for $123.8m. The acquisition comprises four mixed-use communities and two land lease communities, with an ingoing yield of 8.1% and a forecast five-year unlevered IRR of 15%. The acquisition will be partially funded through a $80.2m equity raising and $53.6m in new committed debt facilities. The acquisition is expected to increase Eureka's portfolio to 70 villages with 5,492 homes/sites under management, increase its NSW exposure from 8% to 24%, and improve its FY27 underlying EPS guidance to at least 4.2 cps.
Guidance
FY27 underlying EPS guidance upgraded to at least 4.2 cps
Outlook
The acquisition is expected to have a double-digit accretion on a full-year basis and significantly improve Eureka's scale and relevance.
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