Eureka Group Holdings has acquired Mandurah Coastal Holiday Park for $18.4 million, adding 168 mixed-use sites and securing approvals for significant expansion in a fast-growing WA regional market.
- Mandurah Coastal Holiday Park acquired for $18.4 million
- 168 existing sites including land lease homes and short-term rentals
- Approval for 66 additional land lease or rental homes
- Initial yield of 7.7% and target 18.6% IRR over five years
- Acquisition price well below replacement cost
Strategic Expansion in Western Australia’s Regional Market
Eureka Group Holdings (ASX:EGH) has struck an $18.4 million deal to acquire Mandurah Coastal Holiday Park, a sprawling mixed-use residential community just 70 kilometres south of Perth. This purchase bolsters Eureka’s footprint in one of Western Australia’s fastest-growing regional centres, where population growth and housing demand are pressing.
The park sits on 4.05 hectares of freehold land and currently hosts 168 sites, including 71 permanent land lease homes, four park-owned rental dwellings, 24 cabins and motel units, plus 69 powered caravan and camping sites. Importantly, the property comes with approval for an additional 66 land lease or long-term rental homes, which Eureka plans to develop, unlocking further value beyond the existing asset base.
Attractive Yield and Development Potential
The acquisition was secured at a 7.7% initial yield, excluding transaction costs, and targets an 18.6% internal rate of return over five years. The $18.4 million price includes a deferred payment of $3 million due 12 months post-settlement, and equates to approximately $110,000 per home or site; significantly below replacement cost, underscoring the deal’s financial appeal.
Simon Owen, Eureka’s Managing Director and CEO, highlighted the strategic rationale: “This acquisition provides the Group with further exposure to the strongly performing Mandurah market, one of Australia’s strongest regional growth areas. The combination of existing approvals, in-situ infrastructure, strong population growth, low rental vacancy, and rising housing prices makes this an attractive long-term affordable housing investment.”
Mandurah Market Dynamics Support Investment Thesis
Mandurah’s population was estimated at around 106,800 residents as of June 2025, growing at roughly 3.5% annually. Rental vacancy rates remain tight at approximately 1.6%, while median house prices have surged more than 20% in the past year to $847,000. These fundamentals reflect constrained housing supply and robust demand for affordable rental and land-lease housing options.
Owen further noted, “This acquisition is consistent with Eureka’s strategy of investing in affordable rental housing in major regional growth centres where supply remains constrained and long-term demand fundamentals are favourable.”
Pipeline and Settlement Timing
Eureka expects to settle the acquisition in late August 2026. The company currently has over $120 million worth of acquisitions in due diligence or advanced price discovery, indicating a strong pipeline for continued portfolio expansion. This deal follows recent moves to grow its all-age rental portfolio, including coastal acquisitions in Victoria and the launch of a wholesale all-age village fund targeting near 20% returns over six years.
Bottom Line?
Eureka’s Mandurah acquisition reinforces its strategy to capitalise on regional housing shortages, but execution of the planned development and market conditions will be key to delivering the projected returns.
Questions in the middle?
- How quickly will Eureka be able to develop the approved 66 additional homes?
- What impact might rising construction costs or regulatory changes have on the project’s economics?
- How will continued population growth and rental market tightness in Mandurah influence occupancy and rental rates?