Eureka Group Holdings (ASX:EGH) closed its first wholesale all-age rental fund, Eureka All Age Village Fund No 1, which began on Tuesday and in which the firm took a 30.9% equity stake, according to a Wednesday Australian bourse filing.
The fund raised AU$14.4 million in equity commitments and will be supported by a further AU$14.5 million in senior debt provided by National Australia Bank (ASX:NAB). The fund has a one-year investment period, followed by a five-year hold period.
The fund was seeded with Barrier Reef Tourist Park, with Benalla Tourist Park to follow shortly, per the filing. Both assets are being sold into the fund from Eureka's balance sheet. Eureka retains a first right of refusal to acquire the two communities if the fund is wound up at the end of the hold period.