Eureka Group Holdings Limited (ASX:EGH) Acquires Burrum River Caravan Park on Fraser Coast
Acquisition Details
Eureka Group Holdings Limited (ASX:EGH) has executed binding contracts to acquire Burrum River Caravan Park on Queensland’s Fraser Coast near Hervey Bay. The mixed-use park, purchased for $5.3 million, encompasses 3.89ha of freehold land with 99 sites, including 55 Manufactured Housing Estate (MHE) homes and 37 powered caravan sites, yielding an initial 8.6%.
Future Plans
The Group plans to convert 37 powered caravan sites into 32 long-term rental units, subject to Council approval, with a projected five-year unlevered IRR of 17.3%. Additionally, Eureka aims to buy back and convert the 55 manufactured homes into long-term rentals over time.
Executive Comments
Chief Executive Officer Simon Owen commented, “The Fraser Coast, like many regions in Queensland, is experiencing a housing crisis. This acquisition provides an opportunity for Eureka to increase the provision of long-term accommodation for singles, couples, retirees, and key workers in the region.” Owen added, “Eureka is confident that the low vacancy rate across the Fraser Coast, coupled with an influx of key workers to deliver these large infrastructure projects over the coming years, will create strong demand for rental accommodation at Burrum River Caravan Park.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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