Eureka Group (ASX:EGH) has bolstered its Victorian footprint with the off-market acquisition of two all-age rental communities on the state’s East Coast for a combined investment of $14.1 million.
The deal includes the Frenchview Lifestyle Village in Grantville and the Paynesville Holiday Park, adding a total of 199 sites to Eureka’s portfolio and increasing its all-age rental capacity by approximately 17%.
The Frenchview acquisition, valued at $7.5 million, secures a 103-site community in the high-growth Bass Coast Shire, roughly 100km south-east of Melbourne.
The asset offers an initial yield of 7.9% and a projected five-year internal rate of return of 15.2%.
Further east in the Gippsland region, the Paynesville Holiday Park was acquired for $6.6 million.
The 96-site mixed-use community yields an initial 7.6% with an ambitious target IRR of 17.3%.
Both deals feature deferred payment structures, with over $2 million of the total purchase price held back for six to twelve months.
Beyond immediate rent collection from permanent land-lease homes and park-owned rentals, Eureka has identified an "upside" through site reconfiguration and the potential densification of 19 development-ready sites.
The expansion comes as the group signals further aggressive growth, confirming an additional $90 million in acquisitions currently under due diligence.
At the time of reporting, Eureka Group’s share price was $0.58.