Eureka secures third WA all-age community with $16.8m Geraldton acquisition
Eureka Group Holdings (ASX: EGH) has executed a contract to acquire Sunset Beach Holiday Park in Geraldton, Western Australia, for a purchase price of $16.8 million.
The deal reflects an ingoing yield of 10.0% including transaction costs and is described as immediately earnings accretive. It marks Eureka’s third all-age rental community in Western Australia.
Settlement is expected by the end of September 2026, following lease assignment by the City of Greater Geraldton.
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Inside the acquisition, a 245-site combined holiday park and lifestyle village
Sunset Beach Holiday Park sits approximately 7km north of the Geraldton CBD, combining a beachfront holiday and workforce accommodation park with a partially developed land lease community. The asset totals 245 sites, blending immediate cash flow with a built-in development pipeline.
The site composition breaks down as follows:
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43 occupied land lease homes
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7 periodic rental sites
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3 completed homes available for sale
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58 DA-approved development sites (30 fully serviced)
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25 tourist cabins
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20 motel rooms
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89 powered sites
On-site amenities include a swimming pool, playground, camp kitchen, amenity block, sun deck and guest laundry facilities.
The park is held under a 35-year Crown Lease commencing 1 June 2024 and expiring 31 May 2059, leaving approximately 33 years remaining. For investors, the structure offers a diversified income asset with recurring rental cash flow alongside a defined avenue for future development.
The Nagambie Lifestyle Park deal, completed at a 7.3% ingoing yield with 26 serviced vacant sites ready for activation, illustrates how Eureka structures acquisitions to layer immediate income from existing tenants alongside a phased development pipeline, a model now replicated at Geraldton.
The growth angle, turning 43 homes into 104
Eureka’s five-year strategy for Sunset Beach centres on unlocking the site’s development potential. The plan involves the development and sale of 58 new land lease homes across the Lifestyle Village, plus the sale of the 3 completed homes currently held for sale.
This activity is forecast to increase permanent MHE (manufactured home estate) sites from 43 to 104 and deliver a 17.1% target five-year unlevered IRR. Additional upside is flagged through the conversion of powered sites into long-term residential rental homes.
| Metric | On Acquisition | Five-Year Target | Investor Takeaway |
|---|---|---|---|
| Purchase price | $16.8m | — | Immediately earnings accretive entry point |
| Ingoing yield | 10.0% | — | Day-one income including transaction costs |
| Permanent MHE sites | 43 | 104 | Development pipeline more than doubles site count |
| Five-year unlevered IRR | — | 17.1% | Targeted return from build-out and rental conversion |
The combination of a strong ingoing yield and a defined development runway underpins the value-creation thesis behind the transaction.
Eureka’s Victorian park acquisitions in April 2026, covering Frenchview Lifestyle Village and Paynesville Holiday Park for a combined $14.1 million, used the same off-market, development-upside template, with five-year IRR targets reaching 17.3% across assets underpinned by regional lifestyle migration demand.
Why Geraldton, the demographics behind the deal
Geraldton is the regional centre of Western Australia’s Mid West, supported by a population of over 42,000 people. For a land lease operator, regional markets with sustained population growth and constrained housing supply provide the demand base that supports both rental income and development sales.
The local housing market remains very tight, with a rental vacancy rate of just 1.1% and a median house price of $552,500. These conditions reflect the constrained supply that Eureka cites as a demand driver.
Underpinning that demand is a significant pipeline of public and private sector investment:
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Geraldton Port Maximisation Project
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New Geraldton Regional Hospital
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Electricity transmission and transport infrastructure upgrades
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Development of the Oakajee Strategic Industrial Area
Constrained supply combined with demand from downsizers, workers and tourists supports both the rental and development sides of the investment case.
Management’s view and what comes next
Managing Director and Chief Executive Officer Simon Owen framed the acquisition as an extension of the company’s established approach.
Simon Owen, Managing Director & CEO
“The acquisition of Sunset Beach Holiday Park is consistent with Eureka’s strategy of expanding our all-age rental portfolio in regional locations with strong demographic and housing fundamentals. Geraldton is a high-quality regional market with a diversified economy, constrained housing supply and a significant pipeline of infrastructure and industrial investment.
Sunset Beach provides Eureka with an attractive ingoing yield and a compelling development opportunity through the build-out of the existing, DA-approved Lifestyle Village. The acquisition also provides exposure to the strong demand from downsizers, workers and tourists, while leveraging infrastructure that is already in place across the park.”
Settlement is expected by the end of September 2026, subject to lease assignment by the City of Greater Geraldton. The transaction reinforces Eureka’s strategic focus on expanding its all-age rental portfolio in regional locations with strong demographic and housing fundamentals.
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