Eureka strikes $123.8m NSW acquisition, launches $80.2m underwritten raise
Eureka Group Holdings (ASX:EGH) has entered into contracts to acquire the NSW Living Portfolio for $123.8 million and will partially fund the deal through a fully underwritten $80.2 million Equity Raising. Management described the transaction as delivering a step-change in the Company’s scale and growth profile.
The portfolio comprises six lifestyle and mixed-use communities in New South Wales, totalling 953 sites across Greater Sydney, the Central Coast, Hunter Valley and Shoalhaven. The acquisition expands Eureka’s footprint to 70 villages and lifts homes and sites under management by 21% to 5,492.
Assets under management rise 23% to $666 million. Eureka retains its position as, in the Company’s words, “the only ASX listed pure-play residential rental specialist.”
The deal is intended to be immediately earnings accretive, with the Company upgrading its FY27 earnings per share guidance alongside the announcement.
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Inside the NSW Living Portfolio acquisition
The vendor is Ingenia Communities Group (ASX: INA). The portfolio consists of two land lease communities and four mixed-use communities, the latter combining land lease sites with tourist cabins and tourist sites.
Eureka acquired the portfolio at a blended ingoing yield of 8.1% and a forecast five-year unlevered IRR of 15%. With 71% permanent sites, the communities are structured to generate recurring income.
The Sunset Beach Holiday Park deal in Geraldton, contracted in August 2026, shows a comparable structure: a 10.0% ingoing yield on a mixed-use asset with a 17.1% five-year unlevered IRR target, achieved through phased conversion of tourist sites to permanent land lease homes.
The transaction increases Eureka’s NSW exposure from 8% to 24% of total homes and sites, establishing a presence in Greater Sydney, described by the Company as the highest rent market in Australia. All assets are expected to be fully settled by the end of CY26.
| Asset | Type | Region | Purchase Price ($m) | Total Sites |
|---|---|---|---|---|
| The Grange | LLC | Morisset (Central Coast) | $34.8M | 209 |
| Bevington Shores | LLC | Lake Macquarie (Central Coast) | $30.1M | 193 |
| Nepean River | Mixed use | Sydney | $18.3M | 150 |
| Sydney Hills | Mixed use | Sydney | $16.8M | 137 |
| Hunter Valley | Mixed use | Hunter Valley | $12.2M | 115 |
| Ulladulla | Mixed use | Shoalhaven | $11.6M | 149 |
| Total | 2 LLC / 4 MU | NSW | $123.8M | 953 |
Simon Owen, Managing Director and Chief Executive Officer
“The Acquisition is transformational for Eureka, adding 953 established sites across Greater Sydney and other key NSW locations, materially increasing scale and reinforcing Eureka’s status as the only ASX listed pure-play residential rental specialist.”
How the $80.2m equity raising is structured
The Equity Raising is a single offer with institutional and retail components, structured as a 1 for 3.29 accelerated non-renounceable entitlement offer. Key mechanics include:
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$80.2 million fully underwritten, issuing approximately 130.4 million New Shares, equivalent to roughly 30.4% of existing shares on issue.
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Offer Price of $0.615 per New Share, representing a 0.4% discount to the 5-day VWAP of $0.617 and a 4.4% discount to the adjusted 10-day VWAP of $0.643 (both as at 1 September 2026).
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Underwritten by MA Moelis Australia Advisory, Morgans Corporate Limited and Unified Capital Partners.
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Filetron Pty Ltd (34.8% interest) has committed to taking up its full entitlement.
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Record date of 7 September 2026 at 7.00pm AEST.
New Shares issued under the Equity Raising will not be entitled to the 0.73 cents per share dividend for the six months to 30 June 2026, as they will be issued after that dividend’s ex date of 25 August 2026.
Alongside the raise, Eureka secured $80.0 million in new committed debt facilities from Westpac and National Australia Bank. Of this, $53.6 million will fund the remainder of the acquisition, with $26.4 million available to support future acquisitions and developments.
Understanding land lease communities and why the model matters
A land lease community (LLC) is a residential model where residents own their home but rent the land site it sits on. Mixed-use communities combine this arrangement with tourist cabins and short-stay tourist sites, blending long-term rental income with holiday accommodation revenue.
The model generates recurring income through ongoing site rental payments, which provides steadier cashflow visibility than one-off property sales. Permanent sites, where residents stay long term, form the backbone of this recurring income base.
Management pointed to several structural tailwinds supporting the sector: Australia’s rental undersupply, declining home ownership and ageing demographics. The Company noted these factors provide an attractive backdrop for continued investment into affordable seniors and all-age accommodation.
For investors, the high proportion of permanent sites (71% across the acquired portfolio) offers greater visibility on the durability of future earnings.
FY27 earnings guidance upgraded
Pro forma for the acquisition and Equity Raising, Eureka now expects FY27 underlying EPS of at least 4.2 cps. This represents 22% growth on FY26 and an 8% accretion on previous guidance of at least 3.9 cps.
The Company noted that a footnote to the guidance assumes double digit accretion on a full-year basis, based on the acquisition and Equity Raising settling on 1 July 2026.
The upgraded guidance indicates the transaction is expected to be immediately earnings accretive rather than dilutive, despite the additional shares issued under the raise.
The Townsville Lakes Holiday Park acquisition, contracted in mid-August 2026, sits within a $120 million pipeline that Eureka described as under due diligence or advanced price discovery at the time, indicating the NSW Living Portfolio is unlikely to be the final material transaction in this capital deployment cycle.
Key dates and what happens next
The offer follows an indicative timetable, with all dates referenced to Sydney time and subject to variation at Eureka’s discretion. Key milestones for 2026 include:
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Institutional Entitlement Offer conducted — Thursday, 3 September
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Trading recommences on an ex-entitlement basis — Monday, 7 September
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Retail Entitlement Offer opens — Thursday, 10 September
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Retail Entitlement Offer closes — Wednesday, 23 September at 5.00pm AEST
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Announcement of Retail Entitlement Offer results — Monday, 28 September
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All portfolio assets expected to be fully settled by the end of CY26
Eligible retail shareholders who take up their full entitlement may also apply for additional New Shares through an Oversubscription Facility, subject to availability and any scale back. Eureka held an investor briefing at 11:30am AEST on 3 September 2026 to discuss the acquisition and the raise.
The Company framed the transaction around its stated strategy of acquiring established communities at attractive entry yields, with opportunities to improve operating performance and densify selected sites over time.
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