Eureka Group Acquires Two Victorian Rental Communities for Over AU$14 Million
Eureka Group Holdings (ASX:EGH) agreed to acquire the Frenchview Lifestyle Village in Grantville and the Paynesville Holiday Park in East Gippsland for a combined purchase price of AU$14.1 million, according to a Wednesday Australian bourse filing.The assets comprise 199 sites in total, including 109 land-lease homes, 24 park-owned rentals, 19 development-ready sites, and 47 short-term or annual sites, with additional upside potential through reconfiguration, densification, and possible adjacent land acquisition at Paynesville, per the filing.Frenchview was acquired for AU$7.5 million at a 7.9% initial yield including AU$1 million deferred for 12 months, while Paynesville was acquired for AU$6.6 million at a 7.6% yield with AU$1.1 million deferred for six months, the filing said.The acquisitions will increase the company's all-age rental portfolio by about 17%, with settlement anticipated within three weeks, the filing added.The company's shares rose around 1% in recent Wednesday trade.