Key Highlights

  • Eureka Group Holdings (ASX:EGH) has entered binding contracts to acquire Mandurah Coastal Holiday Park in Western Australia for $18.4 million.
  • The freehold property contains 168 existing sites, comprising land-lease homes, park-owned rentals, cabins, motel rooms and short-term caravan and camping sites.
  • Approval is already in place for 66 additional land-lease or long-term rental homes, providing further development capacity within the 4.05-hectare site.
  • The Acquisition carries an initial Yield of 7.7%, while Eureka has stated a target five-year internal rate of return of 18.6%.

Eureka Group Holdings Limited (ASX:EGH) closed at $0.72 on 13 August 2026, up 1.42%, or $0.01. The movement came as the company announced an agreement to acquire Mandurah Coastal Holiday Park, a mixed-use residential and short-stay property located about 70 kilometres south of Perth.

The transaction has a purchase price of $18.4 million, including a deferred payment of $3.0 million due 12 months after settlement. Eureka expects the transaction to settle in late August 2026.

The acquisition adds a freehold property covering approximately 4.05 hectares to Eureka's Western Australian portfolio. Its location provides access to the Mandurah central Business district, railway station, beaches, marina and foreshore precinct.

168 Existing Sites Across Multiple Accommodation Types

Mandurah Coastal Holiday Park currently comprises 168 sites across several forms of accommodation and occupancy. The property includes 71 occupied permanent land-lease homes and four park-owned rental dwellings.

The site also contains 24 cabins and motel units, together with 69 powered caravan and camping sites intended for short-term use. This mix gives the property exposure to both longer-duration residential occupancy and short-stay accommodation.

Eureka has acquired the property at an initial yield of 7.7%, excluding transaction costs. The company has also disclosed a target five-year internal rate of return of 18.6% for the acquisition.

Development Capacity Adds Another Dimension

A key component of the transaction is the existing approval for 66 additional land-lease home sites. Eureka intends to develop these sites as part of its strategy for the property.

The company has stated that the acquisition represents a cost of approximately $110,000 per home or site, which it describes as being below replacement cost. Existing site infrastructure is expected to form part of the development platform for the additional homes.

The combination of existing accommodation, approved expansion capacity and freehold ownership gives the property several operating components within a single asset. The development program will add a further residential element to the existing mix once completed.

Mandurah Housing Market Provides Operating Context

Eureka's announcement also provided market data for the Mandurah region. The Mandurah City population was estimated at approximately 106,800 residents in June 2025, with annual population growth of about 3.5%.

Rental vacancy was reported at approximately 1.6%, while the median house price had risen by more than 20% over the preceding 12 months to $847,000. These figures form the market backdrop cited by Eureka for its focus on affordable rental and land-lease housing in the area.

The company said the acquisition aligns with its strategy of investing in affordable rental housing in major regional growth centres where housing Supply remains constrained.

Acquisition Pipeline Remains Active

The Mandurah transaction comes as Eureka continues to assess further acquisition opportunities. The company disclosed that it has more than $120 million of non-binding acquisitions currently undergoing Due Diligence or advanced price discovery.

The Mandurah property therefore represents one transaction within a broader acquisition program rather than an isolated portfolio addition. The company expects settlement of the latest acquisition in late August, subject to completion of the transaction process.

Conclusion

Eureka Group Holdings' acquisition of Mandurah Coastal Holiday Park adds a 4.05-hectare freehold asset with 168 existing sites and approval for another 66 homes to the company's Western Australian portfolio. The $18.4 million transaction carries a stated 7.7% initial yield and an 18.6% target five-year IRR, while the deferred $3 million payment forms part of the purchase structure. With more than $120 million of additional non-binding acquisitions under review, the Mandurah transaction also provides a reference point for Eureka's continuing expansion across regional affordable housing markets.