• Acquisition of mixed-use residential home village and caravan park in Gladstone, Queensland
• Plans to immediately convert 28 caravan sites into new rental villas
• Acquisition expected to generate an ingoing yield of 9.2%

Eureka Group Holdings Limited (ASX: EGH) has executed binding contracts to acquire a residential home village and caravan park in Gladstone, Queensland. The mixed-use park consists of 19 Manufactured Housing Estate (MHE) homes, 13 short stay cabins, and 77 powered and unpowered sites for camping and caravans. The park also includes a three-bedroom Manager's Residence, central amenities block, and in-ground swimming pool. Eureka has acquired the community on an initial yield of 9.2%. The purchase price is $4.5 million. The acquisition marks Eureka's expansion into the all-age rental market, which the company sees as a significant opportunity given the decline in home ownership and shortage of affordable rental homes in Australia. Based on data from the 2021 National Census, approximately 30% of the Australian population rent their homes, and 85% of the rental population are under the age of 55. Eureka plans to immediately replace 28 caravan sites with one and two-bedroom rental villas at a cost of approximately $5 million, with a stabilised yield on cost of over 12%. Over time, there is also an opportunity to add another 20+ rental villas, subject to Council approval. The purchase will be funded from the proceeds of the company's recent $70.4 million capital raising. Eureka expects to settle the acquisition on 13 March 2025.

Eureka expects this acquisition to be the first of many similar park acquisitions as the company looks to quickly grow its all-age rental portfolio in parallel with the expansion of its existing seniors' affordable rental portfolio.