Eureka Group Holdings (ASX: EGH) Buys Townsville Park for $6.75 Million

Eureka Group Holdings has agreed to acquire Townsville Lakes Holiday Park, expanding its all-age rental portfolio in regional Queensland.

The $6.75 million purchase is immediately earnings accretive, according to Eureka’s announcement dated 17 August 2026. It carries a 9.1% initial yield, including transaction costs.

Settlement is expected before the end of August. The transaction will increase Eureka’s all-age rental portfolio by 8%, measured by rent-collecting homes and sites.

Inside the Acquisition

Townsville Lakes has 110 sites across several accommodation types. These comprise 26 short-stay tourist cabins, 82 powered ensuite sites and two park-owned rentals.

The property also includes a swimming pool, camp kitchen and barbecue areas. Roads, sewerage and electricity infrastructure are already installed across the park.

The existing mix gives Eureka current short-term accommodation income alongside a base for its planned rental conversion strategy.

Conversion Plan Targets Higher Returns

Eureka plans to reposition the property over three to five years. Its strategy includes converting short-term accommodation into long-term rental housing and land lease homes.

The company is also considering site reconfiguration and a full conversion to long-term rentals. Eureka forecasts the strategy will deliver an unlevered internal rate of return above 18.2%.

That forecast exceeds the property’s initial yield because it incorporates the planned conversion and expansion program. However, the announcement does not provide projected capital expenditure or a detailed delivery schedule.

The acquisition adds an operating property with established infrastructure rather than a greenfield development. This may reduce the physical work required before individual sites are repurposed.

Townsville’s Tight Housing Market

Eureka cited Townsville’s housing shortage as a key factor supporting the acquisition. The regional population exceeds 200,000, while the economy spans defence, mining, healthcare, education, logistics and other industries.

Townsville’s rental vacancy rate is 0.6%, compared with 3% considered balanced in Eureka’s announcement. Median rent has risen 16% over 12 months to $462.

Meanwhile, the median house price has increased 30% during the same period to $650,000. These figures frame Eureka’s plan to shift more sites towards long-term accommodation.

Eureka already manages the Condon and Wulguru seniors rental communities in Townsville. Both consistently operate at 100% occupancy and have strong waitlists, the company said.

Acquisition Pipeline Remains Active

Managing Director and Chief Executive Officer Simon Owen said: “Townsville Lakes is a straight down the fairway acquisition for Eureka – attractive ingoing yield, compelling but low-risk conversion and expansion opportunities, strong demand for rental housing underpinned by a buoyant jobs-led economy, highly constrained housing supply and all park infrastructure (roads, sewer, electricity etc) already in place”.

Beyond Townsville Lakes, Eureka is progressing about $120 million of acquisition opportunities. Those assets are under due diligence or at an advanced stage of price discovery.

The pipeline is separate from the binding Townsville transaction and remains subject to its respective review processes. It indicates that acquisitions continue to form a central part of Eureka’s regional rental expansion strategy.