Eureka Group Holdings Ltd (ASX:EGH, FRA:UM7) is expanding its Western Australian portfolio with the $18.4 million acquisition of Mandurah Coastal Holiday Park, a 168-site mixed-use residential community about 70 kilometres south of Perth.
The off-market acquisition comprises 71 occupied land lease homes, 4 park-owned rental dwellings, 24 cabins and motel units and 69 powered caravan and camping sites, with approval already in place for another 66 land lease or long-term rental homes.
Eureka is acquiring the property at an initial yield of 7.7%, excluding transaction costs, and is targeting a 5-year internal rate of return of 18.6%. The acquisition equates to about $110,000 per existing home or site.
Acquisition adds scale in growing Mandurah market
Mandurah Coastal Holiday Park occupies a 4.05-hectare freehold site close to the Mandurah CBD, railway station, beaches, marina and foreshore precinct.
The $18.4 million purchase price includes a deferred payment of $3 million due 12 months after settlement.
Eureka intends to develop the additional 66 approved land lease sites as part of its strategy for the property, providing a pathway to expand the community beyond its existing accommodation base.
Managing director and CEO Simon Owen said the acquisition increased Eureka's exposure to the Mandurah market, where population growth, limited rental availability and rising housing prices were supporting demand for affordable accommodation.
“This acquisition provides the Group with further exposure to the strongly performing Mandurah market, one of not only Western Australia’s but Australia’s strongest regional growth markets,” Owen said.
Project supported by regional housing demand
Mandurah had an estimated population of about 106,800 in June 2025 and annual population growth of around 3.5%, according to figures cited by Eureka.
Rental vacancy was around 1.6%, while the median Mandurah house price had risen by more than 20% over the preceding 12 months to $847,000. Eureka said those conditions supported demand for affordable rental and land lease housing.
Images included with the announcement show the Mandurah property within Eureka's broader Western Australian portfolio as well as the 4.05-hectare freehold site, an example manufactured home design and existing short-stay accommodation.
Next steps
Settlement of the Mandurah acquisition is expected in late August 2026.
Eureka will then focus on integrating the property and progressing the approved additional homes. The company also has more than $120 million of non-binding acquisition opportunities currently in due diligence or advanced price discovery.
About Eureka Group Holdings
Eureka Group Holdings owns and operates affordable rental accommodation and land lease communities, with the Mandurah acquisition adding to its growing portfolio in Western Australia.
The company is pursuing a strategy of investing in regional growth centres where housing supply is constrained and demand for affordable accommodation remains strong.