Eureka Group expands Victorian footprint with dual coastal acquisitions
Eureka Group Holdings has entered binding agreements to acquire Frenchview Lifestyle Village and Paynesville Holiday Park on Victoria’s east coast for a combined $14.1 million, adding 199 sites to its portfolio. The off-market transactions increase the company’s all-age rental portfolio by approximately 17% in terms of rent-collecting homes and sites, with settlement expected within three weeks.
The acquisitions demonstrate Eureka’s sourcing capabilities in a competitive market, securing both assets through direct negotiation rather than auction. Off-market deals typically enable buyers to avoid bidding premiums whilst leveraging established industry relationships.
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What are land lease communities?
Land lease communities operate on a model where residents own their dwelling but pay ongoing rent for the land beneath it. This differs from traditional property ownership, where buyers acquire both the structure and the underlying land title, and from caravan parks, which typically feature short-term occupancy.
For operators like Eureka, the land lease model generates recurring rental income without the capital intensity of owning and maintaining dwellings. Site rents provide stable cash flow whilst development-ready plots offer growth opportunities through infill housing.
The model appeals to retirees and downsizers seeking affordable homeownership in regional locations, supported by lower upfront costs compared to conventional property purchases.
Acquisition breakdown and yield targets
Frenchview Lifestyle Village
Frenchview Lifestyle Village sits in Grantville, approximately 100 kilometres south-east of Melbourne. Eureka has agreed to pay $7.5 million (with $1.0 million deferred for twelve months), reflecting an initial yield of 7.9% excluding transaction costs. The company targets a five-year IRR of 15.2%.
The 103-site park comprises:
- 78 permanent land lease homes collecting site rents
- 19 park-owned rental properties
- 2 annual sites
- 2 undeveloped DA-approved sites ready for prefab home installation
- 2 sites with new homes for sale
On-site amenities include a swimming pool, communal facilities, and proximity to the foreshore.
Paynesville Holiday Park
Located approximately 300 kilometres east of Melbourne in East Gippsland, Paynesville Holiday Park has been acquired for $6.6 million (with $1.1 million deferred for six months). The asset delivers an initial yield of 7.6% with a target five-year IRR of 17.3%.
The 96-site mixed-use community includes:
- 26 permanent land lease homes
- 5 park-owned rentals
- 11 short-stay tourist cabins
- 20 annual sites collecting rents
- 14 powered sites
- 17 undeveloped DA-approved sites
- 3 sites with new homes for sale
Community amenities feature a swimming pool, camp kitchen, games room and BBQ areas. Additional upside exists through potential acquisition of adjoining land.
| Metric | Frenchview | Paynesville |
|---|---|---|
| Purchase Price | $7.5M | $6.6M |
| Initial Yield | 7.9% | 7.6% |
| Five-Year IRR Target | 15.2% | 17.3% |
| Total Sites | 103 | 96 |
| Development-Ready Sites | 2 | 17 |
Regional growth supporting demand
Bass Coast Shire, home to Frenchview, has experienced population growth from approximately 33,000 in 2016 to over 40,000 in 2021. The region benefits from metropolitan Melbourne outflows seeking affordable housing options, with forecast delivery of an additional 8,000 to 10,000 dwellings by 2036 expected to support continued demand.
East Gippsland, where Paynesville operates, maintains a population exceeding 48,000 with a diversified local economy. Both locations sit within regional Victorian corridors experiencing demographic tailwinds as lifestyle migration accelerates.
Population inflows from capital cities into regional areas have strengthened occupancy fundamentals for land lease operators, particularly in coastal locations offering amenity and affordability. These demographic trends underpin rental growth assumptions across Eureka’s Victorian portfolio.
Pipeline signals continued momentum
These transactions mark Eureka’s eleventh all-age rental village acquisition in the past 15 months, demonstrating consistent execution on its growth strategy. The company has disclosed a further $90 million of acquisitions currently under due diligence or advanced price discovery, with combined assets expected to contribute more than 200 rent-collecting sites upon completion and development.
Simon Owen, Managing Director and CEO
“These acquisitions are consistent with Eureka’s strategy of expanding its all-age rental portfolio in regional locations supported by favourable demographic and housing market fundamentals. Upon completion and development, the assets are expected to contribute more than 200 rent collecting sites to the Group’s portfolio.”
The active pipeline indicates Eureka’s capacity to source and execute deals beyond these two Victorian acquisitions, providing a visible growth runway in the all-age rental segment. The combination of off-market sourcing, deferred payment structures, and development-ready sites positions the company to deploy capital efficiently whilst building recurring income streams.
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