What did Eureka Group (ASX:EGH) acquire in its latest Victorian expansion?

Eureka Group entered binding agreements to acquire two all-age rental communities, Frenchview Lifestyle Village and Paynesville Holiday Park, for a total of $14.1 million.

What are the key financial metrics for the Frenchview and Paynesville acquisitions?

The Frenchview asset was purchased for $7.5 million at an initial yield of 7.9% and a target five-year internal rate of return (IRR) of 15.2%.

How does this deal affect the Eureka Group (ASX:EGH) investment thesis?

This move signals a strategic push into the "all-age" rental and affordable housing market, diversifying away from a pure seniors' living play.

What is the "upside" or development potential in these new assets?

Beyond immediate rental income, Eureka identified 19 development-ready sites across the two properties that are already DA-approved for new homes.

Why is the location of these acquisitions significant for Eureka Group?

The assets are positioned in the Victorian East Coast and Gippsland regions, which are benefitting from "sea change" population shifts and demand for affordable housing.

What are the main risks for Eureka Group (ASX:EGH) after this announcement?

The primary risk is execution on the "ambitious" target IRRs of 15.2% and 17.3%, which rely on successful site densification and reconfiguration. Additionally, the $90 million in further acquisitions under due diligence could necessitate future capital raisings, which might dilute existing shareholders if not managed carefully.

Eureka acquires Victorian Parks in $14.1M deal

Written by Mahathir BayenaPublished Apr. 22 2026Last Updated Apr. 22 2026

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.