Eureka Group Holdings (ASX: EGH) Buys Mandurah Rental Community for $18.4 Million

Eureka Group Holdings has agreed to acquire Mandurah Coastal Holiday Park for $18.4 million, expanding its affordable housing portfolio in Western Australia.

The off-market transaction covers a 4.05-hectare freehold property about 70 kilometres south of Perth. Eureka expects the acquisition to settle in late August 2026.

The purchase price includes a deferred $3 million payment due 12 months after settlement. Eureka said the initial yield is 7.7%, excluding transaction costs. It is targeting a five-year internal rate of return of 18.6%.

Existing Income Meets Development Capacity

The mixed-use community contains 168 existing sites across several accommodation categories. These include 71 occupied land-lease homes and four park-owned rental dwellings.

The property also has 24 cabins and motel units, plus 69 powered caravan and camping sites. This mix provides exposure to permanent residents, rental tenants and short-term visitors.

Importantly, approval is already in place for another 66 land-lease home sites. Eureka intends to develop those sites as part of its execution strategy.

The company calculated an acquisition cost of $110,000 per existing home or site. It described that price as significantly below replacement cost.

The existing planning approval reduces one hurdle associated with expanding the community. However, the announcement did not provide a construction timetable or development budget for the additional homes.

Mandurah Housing Conditions

Mandurah is Western Australia’s second-largest city outside Perth and one of the state’s fastest-growing local government areas. Its population was estimated at about 106,800 in June 2025.

Annual population growth was around 3.5%, according to Eureka. Meanwhile, rental vacancy was approximately 1.6%, indicating limited available rental stock.

Mandurah’s median house price rose more than 20% over the preceding 12 months to $847,000. These conditions support Eureka’s focus on affordable rental and land-lease accommodation.

The park is close to Mandurah’s central business district, railway station, beaches, marina and foreshore precinct. That location connects the property with local services, transport and recreation.

Strategic Fit in Western Australia

Managing Director and Chief Executive Officer Simon Owen said the acquisition increased Eureka’s exposure to the strongly performing Mandurah market. He cited population growth, low rental vacancy and rising housing prices among the property’s demand drivers.

The deal aligns with Eureka’s strategy of buying affordable rental housing in major regional growth centres. The company focuses on markets where housing supply is constrained and long-term demand fundamentals are favourable.

For Eureka, the transaction combines an operating asset with approved expansion capacity. The current park supplies an ingoing yield, while the 66 approved sites provide a defined avenue for portfolio growth.

Broader Acquisition Pipeline

Eureka also disclosed more than $120 million of non-binding acquisition opportunities. Those potential transactions are either undergoing due diligence or advanced price discovery.

That pipeline is not committed and may not proceed. Still, it shows the Mandurah purchase sits within a broader acquisition program rather than being an isolated transaction.