Key Highlights

  • Eureka Group Holdings has agreed to acquire Townsville Lakes Holiday Park in North Queensland for $6.75 million, with settlement expected before the end of August.
  • The property comprises 110 sites, including short-stay cabins, powered ensuite sites and park-owned rentals.
  • The Acquisition has an initial Yield of 9.1%, including transaction costs, while Eureka estimates an unlevered five-year IRR above 18.2% from its planned conversion strategy.
  • The transaction increases Eureka's all-age rental portfolio by approximately 8%, while a further $120 million of acquisition opportunities remain under Due Diligence or advanced price discovery.

Eureka Group Holdings Ltd (ASX:EGH) has entered binding agreements to acquire Townsville Lakes Holiday Park in North Queensland for $6.75 million, adding 110 sites to its all-age rental portfolio and providing the company with a further regional housing asset in a market experiencing tight rental supply. At 9:59 am on 17 August 2026, Eureka Group shares were trading at A$0.64, down 3.76%, or A$0.025, on the day.

Townsville Acquisition Adds 110 Sites

Townsville Lakes Holiday Park comprises 110 sites, including 26 short-term tourist cabins, 82 powered ensuite sites and two park-owned rental properties. The site also includes amenities such as a swimming pool, camp kitchen and barbecue areas.

Eureka is acquiring the property for $6.75 million, with the transaction representing an initial yield of 9.1% after including transaction costs. Settlement is expected before the end of August, subject to completion of the transaction process.

The acquisition expands Eureka's exposure to the all-age rental housing market and builds on its existing presence in Townsville. The company already operates two seniors rental communities in the city, Condon and Wulguru, which Eureka said consistently maintain full occupancy and waitlists.

Conversion Strategy Creates Further Potential

A central component of the acquisition is Eureka's plan to reposition parts of the existing tourist accommodation toward longer-term rental housing. Over a three-to-five-year period, the company intends to assess the conversion of short-term accommodation into long-term rental housing and/or land-lease homes.

Eureka estimates that execution of this strategy could generate an unlevered internal rate of return above 18.2%. The opportunity is supported by infrastructure already available across the property, including roads, sewerage and electricity.

The existing configuration provides a base from which the company can examine site reconfiguration and accommodation conversion without starting with an undeveloped parcel of land. This gives the acquisition both an immediate income component and a pathway for potential portfolio expansion.

Townsville Housing Market Supports Demand

The acquisition comes as Townsville experiences housing Supply constraints and rising property prices. Eureka said the city's median house price has reached $650,000, representing a 30% increase over the preceding 12 months.

Rental market conditions have also tightened. The company cited a rental Vacancy Rate of 0.6%, compared with approximately 3.0% as a balanced market, while median rent has reached $462 following a 16% increase over the same period.

Townsville's economic base is diversified across industries including defence, manufacturing, agriculture, construction, mining, energy, healthcare, government services, education and logistics. The city has a population exceeding 200,000, providing a substantial regional population base for rental housing demand.

Portfolio Expansion Strategy

The transaction is consistent with Eureka's strategy of increasing its exposure to all-age rental communities in regional markets where demographic and housing conditions support demand.

The company expects Townsville Lakes to increase its all-age rental portfolio by approximately 8% based on rent-collecting homes and sites. This gives the transaction a measurable impact on the composition of the existing portfolio in addition to its contribution to earnings.

Eureka is also continuing to assess other acquisition opportunities. Approximately $120 million of potential transactions are currently described as being under due diligence or in advanced price discovery, indicating that Townsville Lakes forms part of a broader acquisition programme rather than being an isolated transaction.

Financial Profile and Development Opportunity

The 9.1% initial yield provides an immediate Earnings component from the acquired property, while the proposed conversion programme introduces a second potential source of value through increased long-term rental utilisation.

The distinction between the existing income profile and the planned future configuration is important to the Investment case presented by Eureka. The company is not simply acquiring an operating tourist park; it is also assessing how the existing sites can be repositioned toward its preferred all-age rental model.

With infrastructure already established and local rental conditions characterised by low vacancy, the company has identified a market environment that could support the proposed transition.

Conclusion

Eureka Group Holdings (ASX: EGH) is expanding its Queensland footprint through the $6.75 million acquisition of Townsville Lakes Holiday Park, adding 110 sites and an initial 9.1% yield to its portfolio. The transaction combines immediate rental and tourist accommodation income with a longer-term plan to convert selected sites toward long-term rental housing or land-lease homes. With Townsville experiencing a 0.6% rental vacancy rate and rising housing costs, the acquisition provides Eureka with exposure to a market where the company sees sustained housing demand, while its broader pipeline of approximately $120 million indicates continued focus on portfolio expansion.