Australia’s Eureka Group Holdings has secured its second affordable housing village in Victoria in as many months, announcing an $11 million acquisition of Nagambie Lifestyle Park in the state’s north as it accelerates a strategy to diversify beyond its traditional coastal footprint.
The deal follows the $11.7 million purchase of Benalla Tourist Park announced in November and reinforces the group’s push into inland regional markets with strong rental fundamentals. Nagambie Lifestyle Park, located in the Strathbogie Shire south of Shepparton, comprises 127 income-generating sites, including 75 land-lease homes, 18 park-owned rental units, 19 annual sites and 15 motel rooms.
Eureka said the $11 million price reflects a yield of 7.3 per cent and a targeted five-year internal rate of return of 15.9 per cent. The park also benefits from a recently expired planning permit covering 26 additional sites, all of which are fully serviced and ready for development.
The company expects to settle the transaction by the end of this month and has already applied to reactivate the planning permit. Subject to council approval, Eureka plans to deliver new homes to the park from mid-2026.
Chief executive Simon Owen said Nagambie’s demographic and housing trends fit squarely with the company’s affordable housing focus. “Over the past 10 years, Nagambie has experienced strong population growth and has established itself as an attractive retirement centre within close proximity to Melbourne,” he said.
“With a rental vacancy rate of just 0.4 per cent, and a median house price of $650,000, Nagambie has the market fundamentals that align with Eureka’s affordable housing strategy,” Owen added. On completion of the planned build-out, the village is expected to expand to 155 sites, with more than 90 per cent comprising long-term rental units and land-lease homes.
The Nagambie purchase marks Eureka’s ninth all-age rental village acquisition in the past year. While the group has historically focused on seniors’ affordable communities, it has increasingly targeted all-age rental assets amid a nationwide shortage of rental accommodation.
Eureka’s first all-age acquisition in Victoria, the Benalla property, was secured on an 8 per cent yield and includes 145 revenue-generating sites across land-lease homes, rentals, tourist cabins and motel rooms.
As at the end of October, Eureka operated 61 affordable living villages nationwide, with 2,724 units and 828 all-age rental sites, alongside a development pipeline exceeding 700 units. The group said it has a further $90 million of non-binding acquisitions under due diligence, supported by a $70.4 million capital raise completed at the end of 2024.
In FY25, Eureka posted a net profit of $20.1 million, up 52 per cent year-on-year, while profit before tax rose 31 per cent to $12 million as revenue climbed 11 per cent to $45.8 million.
