Eureka Group Holdings is expanding its rental offering to all ages, paying $22.15 million for a Perth community.
The seniors community owner-operator with 52 villages across six states acquired the 200-site all-ages Hillside Garden Village at Mount Richon, about 30km south-east of the CBD.
The asset comprises 146 land-lease homes, 46 resident owned caravans, six short-term caravan sites and three motel rooms.
The 9.1ha freehold site holds approval to add four units and a proposal for 23 rental cabins is now with the Armadale City Council.
Eureka expanded into the affordable all-age market last financial year and recorded a weighted average capitalisation rate of 8.91 per cent for the stream compared to 8.14 per cent for its seniors villages.
Since the end of June the company has settled on two all-age properties: the Emerald Tourist Park in Queensland’s central west and Coral Tree Lodge Caravan Park on the NSW South Coast.
The WA acquisition is expected to settle in mid-October and deliver an ongoing yield of 8.4 per cent, and a five-year internal rate of return of 15 per cent.
Eureka entered the WA market in 2023 with the acquisition of six seniors rental living communities in Perth, Mandurah, Bunbury and Albany.
The acquisition of Hillside brings its WA portfolio to more than 500 sites and was funded through the company’s October 2024 capital raising.
Eureka chief executive Simon Owen said the group had invested $73.5 million in buying eight communities increased the portfolio by 29 per cent.
“Western Australia is an important market for Eureka, our seniors’ rental living villages are operating at full occupancy with waitlists,” Owen said.
“Hillside is a well-presented, large-scale village offering strong immediate, high-quality rental earnings and future development potential.
“It is the perfect acquisition to launch our all-age model in Western Australia.”
