Eureka Group Holdings Limited (ASX:EGH) Acquires Hillside Garden Village in Perth
Acquisition Details
Eureka Group Holdings Limited (ASX:EGH) has acquired Hillside Garden Village in Mount Richon, Perth, for $22.15 million. The residential community comprises 200 sites, including 145 land-lease homes, 46 caravan homes, six short-term caravan sites, and three motel rooms. The acquisition offers an ingoing yield of 8.4% and a five-year internal rate of return of 15.0%.
Portfolio Expansion
Following the acquisition, Eureka has invested a total of $73.5 million in eight communities, adding 828 income-producing sites and increasing its portfolio by 29%. The group has also added 304 future development sites to its pipeline, now totaling 728 sites.
Market Context
Mount Richon, located 37km southeast of Perth CBD, has a rental vacancy rate of just 1.1%, below the balanced market rate of 3.0%. The City of Armadale, experiencing significant population growth, is one of Western Australia’s fastest-growing regions.
Future Development
The Hillside Garden Village includes 9.1 hectares of freehold land with approvals to add four additional units. There is also vacant land available for developing 23 more rental units, pending council approval.
Executive Comments
Chief Executive Officer Mr Simon Owen stated, “Western Australia is an important market for Eureka. Our Seniors Rental Living villages are operating at full occupancy with waitlists. Hillside is a well-presented, large-scale village offering strong immediate, high-quality rental earnings and future development potential. It is the perfect acquisition to launch our all-age rental model in Western Australia.”
Motley Fool contributor Aaron Shaw 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 recommended Eureka Group. 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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