Eureka Secures 7.3% Yield from $11M Nagambie Lifestyle Park Deal
Eureka Group Holdings has acquired Nagambie Lifestyle Park for $11 million, marking its ninth all-age rental community and reinforcing its affordable housing strategy in regional Victoria.
- Acquisition of Nagambie Lifestyle Park with 127 revenue-generating sites
- Purchase price of $11 million with an initial yield of 7.3%
- Target five-year internal rate of return (IRR) of 15.9%
- Plans to reactivate planning permit for 26 additional serviced sites
- Nagambie acquisition expands Eureka’s Victorian rental community portfolio
Strategic Regional Expansion
Eureka Group Holdings Limited (ASX, EGH) has taken a significant step in expanding its footprint in regional Victoria with the acquisition of Nagambie Lifestyle Park. Located approximately 140 kilometres north of Melbourne, Nagambie is a mixed-use residential community that complements Eureka’s existing portfolio of all-age rental villages in the region.
The purchase, valued at $11 million, includes 127 revenue-generating sites comprising land-lease homes, park-owned rentals, annual sites, and motel rooms. This acquisition marks Eureka’s ninth all-age rental village acquisition in the past year, underscoring the company’s aggressive growth strategy in the affordable housing sector.
Financial Metrics and Growth Potential
The deal offers an initial yield of 7.3%, excluding transaction costs, and targets a five-year internal rate of return (IRR) of 15.9%. These figures highlight the financial attractiveness of the acquisition amid a backdrop of strong regional demand. Nagambie’s rental vacancy rate is notably low at 0.4%, while the median house price stands at $650,000, reflecting robust market fundamentals.
Importantly, the site includes 26 serviced vacant lots with a recently expired planning permit, which Eureka intends to reactivate. Subject to council approval, the company plans to introduce new homes to the park from mid-2026, potentially expanding the community to 155 sites with over 90% dedicated to long-term rentals and land-lease homes.
Regional Context and Market Positioning
Nagambie is the largest town in the Strathbogie Shire and benefits from proximity to larger regional centres such as Shepparton, Bendigo, and Albury. The local economy is supported by agriculture, forestry, and wine manufacturing, providing a stable employment base that supports population growth.
Eureka’s Managing Director Simon Owen emphasised the alignment of Nagambie’s demographics and housing market with the company’s affordable housing strategy. The acquisition not only strengthens Eureka’s presence in Victoria but also leverages synergies with nearby communities, including Benalla, Shepparton, and Albury, where Eureka already operates rental living villages.
Looking Ahead
The acquisition is expected to settle in late January 2026, subject to customary conditions. Meanwhile, Eureka continues to pursue further growth opportunities, with approximately $90 million in non-binding acquisitions currently under due diligence. The successful integration and development of Nagambie Lifestyle Park will be a key indicator of Eureka’s ability to scale its regional rental community model effectively.
Bottom Line?
Eureka’s Nagambie acquisition signals confident regional expansion, but council approvals will be pivotal to unlocking its full potential.
Questions in the middle?
- Will the local council approve the reactivation of the planning permit for additional sites?
- How will Eureka manage integration and operational efficiencies across its growing portfolio?
- What impact will further acquisitions under due diligence have on Eureka’s financial position?
