Eureka Group Outlays $18.4m on Mandurah Coastal Holiday Park Acquisition

Eureka Group Holdings (ASX: EGH) has announced the $18.4 million acquisition of Mandurah Coastal Holiday Park mixed-use residential community, located approximately 70 kilometres south of Perth.

Sitting on 4.05 hectares, the property consists of 71 permanent land lease homes, four park-owned rental dwellings, 24 cabins and motel units, and 69 powered caravan and camping sites.

Approval is in place for a further 66 land lease or long-term rental homes, which Eureka intends to develop as part of its execution strategy.

Consideration for the off-market acquisition represents a cost of $110,000 per home / site, significantly below replacement cost.

It will have an initial yield of 7.7% (excluding costs) and includes a deferred payment of $3 million due 12 months after settlement.

Fast-Growing Region

Mandurah is Western Australia’s second-largest city outside Perth and is reported to be one of the state’s fastest-growing local government areas.

The city’s population in June 2025 was estimated at approximately 106,800 residents, with annual growth of around 3.5%.

Rental vacancy remains tight at 1.6%, while median house prices have increased by over 20% in the past 12 months to $847,000, supporting demand for affordable rental and land lease accommodation.

Formerly known as Belvedere Caravan Park, Mandurah Coastal underwent extensive multi-year renovations before being re-opened in 2021.

Consistent Company Strategy

Eureka managing director Simon Owen said the purchase would offer the group exposure to one of the country’s strongest regional growth markets.

“This acquisition is consistent with our strategy of investing in affordable rental housing in major regional growth centres where supply remains constrained and long-term demand fundamentals are favourable,” he said.

“The combination of existing approval for additional homes, in-situ site infrastructure, strong population growth, low rental vacancy, and rising housing prices makes this an attractive long-term investment for Eureka.”

Eureka, which has in excess of $120m in non-binding acquisitions currently in due diligence or advanced price discovery, expects to settle the acquisition by month end.