Eureka Group Buys $11M Nagambie Park for 7.3% Yield Plus 26 Expansion Sites
Eureka Group Holdings Limited (ASX: EGH) has announced the $11.0 million acquisition of Nagambie Lifestyle Park, marking the company’s second all-age rental community in Victoria. The mixed-use residential park, located approximately 140km north of Melbourne, delivers an ingoing yield of 7.3% with a target five-year internal rate of return of 15.9%.
The acquisition represents Eureka’s ninth all-age rental village purchase in the past 12 months, demonstrating sustained execution velocity in the regional Victorian market. The park currently comprises 127 revenue-generating sites across a 4.3 hectare freehold landholding, with an additional 26 serviced vacant sites providing embedded growth optionality. Settlement is expected in late January 2026, subject to customary conditions.
Eureka Group Expands Victorian Footprint with $11 Million Nagambie Lifestyle Park Acquisition
The Nagambie Lifestyle Park acquisition delivers immediate cash flow generation through a diversified site mix whilst providing a significant value-add runway. The purchase price of $11.0 million reflects strategic positioning in a supply-constrained regional market experiencing structural demand tailwinds.
The acquisition delivers five key strategic benefits for Eureka shareholders:
- Immediate income generation from 127 operational sites across four revenue streams
- Geographic clustering with existing Benalla, Shepparton, and Albury assets, creating operational efficiencies
- Embedded value-add upside through 26 serviced vacant sites (subject to planning permit renewal)
- Strong market fundamentals in Nagambie, with a rental vacancy rate of just 0.4% and median house prices of $650,000
- Scalable platform with final build-out potential of 155 total sites targeting 90%+ long-term rental mix
The 7.3% ingoing yield positions the acquisition competitively within Eureka’s portfolio, whilst the 15.9% five-year target internal rate of return assumes successful activation of vacant sites. Nagambie’s proximity to major regional centres, including Shepparton (population 30,000+), Bendigo (100,000+), and Albury (50,000+), provides population growth tailwinds without urban land cost premiums.
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What Does the Nagambie Lifestyle Park Acquisition Mean for Eureka Shareholders?
The Nagambie Lifestyle Park acquisition delivers immediate revenue generation through a diversified site mix whilst embedding significant value-add optionality. The current 127 operational sites comprise 75 land-lease homes, 18 park-owned rental units, 19 annual sites, and 15 motel rooms, creating four distinct revenue streams that reduce concentration risk.
The 26 serviced vacant sites represent the primary value creation opportunity. Eureka has commenced the planning permit renewal process and anticipates landing new homes from mid-2026, subject to Council approval. The sites are fully serviced with infrastructure already in place, reducing the capital intensity typically associated with greenfield development.
Beyond the immediate acquisition, the park includes 2 completed homes currently available for sale, providing near-term revenue activation potential. Upon final build-out, management expects Nagambie Lifestyle Park to comprise 155 total sites, with more than 90% configured as long-term rental units and land-lease homes. This aligns with Eureka’s strategic focus on recurring rental income rather than transactional sales revenue.
| Metric | Current State | Build-Out Potential | Revenue Impact | Timeline |
|---|---|---|---|---|
| Total Sites | 127 | 155 | +22% capacity increase | Mid-2026 onwards |
| Vacant Sites | 26 | 0 | Full site activation | Phased 2026-2027 |
| Rental Mix | Current configuration | 90%+ rental/land-lease | Recurring income weighting | Progressive optimisation |
| Completed Homes for Sale | 2 | To be determined | Near-term revenue | Immediate |
| Land Area | 4.3 hectares | 4.3 hectares | Freehold ownership | Current |
The acquisition contributes to Eureka’s broader growth trajectory, with the company maintaining $90 million in non-binding acquisitions currently in due diligence. This pipeline scale signals sustained acquisition momentum and provides visibility on earnings growth beyond the Nagambie settlement.
The four revenue streams at Nagambie provide diversification benefits:
- Land-lease homes generate recurring site fee income with low management intensity
- Park-owned rental units deliver rental income with asset ownership
- Annual sites provide short-term accommodation revenue with higher turnover potential
- Motel rooms capture transient visitor demand in the tourism-exposed Nagambie market
Understanding All-Age Rental Communities: The Investment Case
All-age rental communities represent a hybrid accommodation model positioned between traditional caravan parks and retirement villages. Unlike age-restricted retirement villages (typically 55+ or 60+), all-age rental communities accept residents across broader age demographics, whilst providing permanent residential accommodation rather than short-term holiday sites.
The business model generates revenue through a combination of land-lease arrangements, where residents own their home but lease the site, and park-owned rental units, where Eureka owns both the dwelling and land. This dual-revenue structure provides recurring income streams with lower capital intensity than conventional property development.
Regional Victoria presents compelling economics for this model due to structural housing affordability constraints. Nagambie’s median house price of $650,000 creates a significant affordability gap for residents seeking home ownership, whilst the 0.4% rental vacancy rate indicates severe supply-demand imbalances in traditional rental accommodation.
“Over the past 10 years, Nagambie has experienced strong population growth and has established itself as an attractive retirement centre within close proximity to Melbourne. With a rental vacancy rate of just 0.4%, and a median house price of $650,000, Nagambie has the market fundamentals that align with Eureka’s affordable housing strategy,” said Simon Owen, Managing Director and Chief Executive Officer.
The all-age rental community model addresses this affordability gap by providing lower-cost housing options with security of tenure. Residents access accommodation at price points significantly below conventional rental or purchase options, whilst Eureka captures recurring revenue from site fees and rental income.
Why Regional Victoria Offers Compelling Returns
Nagambie is the largest town in the Strathbogie Shire, positioned within a 140km radius of Melbourne and proximate to major regional employment centres. Agriculture, forestry, and wine manufacturing drive regional employment, providing economic diversification beyond purely residential demand drivers.
The park’s existing infrastructure reduces the capital expenditure required to activate vacant sites. Current amenities include a community centre, swimming pool, camp kitchen, games room, and laundry and amenity blocks. This positions Nagambie as an established community rather than a greenfield development requiring significant upfront amenity investment.
Proximity to Melbourne provides population growth tailwinds as lifestyle migration trends accelerate. Regional Victoria has experienced sustained population inflows from metropolitan areas, driven by remote work adoption, cost-of-living pressures, and lifestyle preferences. Nagambie’s positioning as an established retirement destination captures this demographic shift whilst maintaining operational proximity to Eureka’s Victorian asset cluster.
How Will Nagambie Lifestyle Park Contribute to Eureka’s Growth Strategy?
Nagambie represents Eureka’s second all-age rental community in Victoria, following the earlier acquisition of Benalla Tourist Park. The geographic clustering strategy creates operational leverage through shared management resources, maintenance economies of scale, and procurement efficiencies across the regional Victorian portfolio.
The acquisition positions Nagambie within close proximity to Eureka’s existing Shepparton and Albury seniors rental living villages, as illustrated in the company’s regional asset map. This clustering enables centralized operational oversight whilst capturing distinct market dynamics across the all-age rental and seniors rental segments.
The timeline for activating the 26 vacant sites provides near-term catalysts for earnings accretion. Eureka has commenced the planning permit renewal process, with management anticipating the landing of new homes from mid-2026 onwards, subject to Council approval. The sites are fully serviced with water, electricity, and sewerage connections already in place, reducing the lead time between permit approval and revenue generation.
| Asset | Location | Acquisition Status | Sites/Capacity |
|---|---|---|---|
| Nagambie Lifestyle Park | Nagambie, VIC | Settlement late January 2026 | 127 current, 155 build-out |
| Benalla Tourist Park | Benalla, VIC | Operational (first VIC all-age) | Not disclosed |
| Shepparton Villages | Shepparton, VIC | Operational (seniors rental) | Portfolio asset |
| Albury Villages | Albury, NSW border | Operational (seniors rental) | Portfolio asset |
The $90 million pipeline in non-binding due diligence signals sustained acquisition momentum beyond Nagambie. This represents approximately 8x the Nagambie purchase price, suggesting significant near-term growth potential if transactions progress to completion. The pipeline scale also indicates Eureka’s market position as an active consolidator in the all-age rental and seniors accommodation sectors.
Nagambie’s integration follows a three-phase execution roadmap:
- Immediate stabilization of the existing 127-site operations, ensuring continuity of revenue streams across land-lease, rental, annual sites, and motel rooms
- Near-term expansion through landing homes on 26 vacant sites from mid-2026, subject to planning permit renewal and Council approval
- Long-term optimization toward the 155-site build-out with more than 90% configured as long-term rental units and land-lease homes
This phased approach balances immediate cash flow generation with strategic value-add execution, mitigating development risk whilst capturing embedded growth optionality.
Value-Add Upside: From 127 Sites to 155
The 26 serviced vacant sites represent the primary value creation lever in the Nagambie acquisition. The sites are fully serviced with utilities and infrastructure connections already in place, reducing the capital intensity and execution risk typically associated with greenfield site development.
The planning permit renewal process is administrative in nature rather than requiring rezoning or material infrastructure upgrades. Eureka has commenced engagement with Council authorities and anticipates approval timeframes consistent with standard permit renewal procedures. This positions the vacant site activation as a known execution pathway rather than a high-risk development bet.
The utilization of pre-fabricated homes accelerates the time-to-revenue once planning approval is secured. The announcement includes images of recently built pre-fab homes at Nagambie, demonstrating the installed product quality and design standards. Pre-fab construction typically reduces on-site build times to weeks rather than months, enabling rapid site activation following permit approval.
“Upon final build-out of vacant sites, Eureka anticipates that Nagambie Lifestyle Park will comprise a community of 155 sites, with more than 90% being long-term rental units and land-lease homes,” Simon Owen added.
The target 90%+ rental mix at build-out aligns with Eureka’s strategic focus on recurring revenue streams. Land-lease arrangements and park-owned rentals generate predictable monthly income, contrasting with transactional sales models that create revenue volatility. This recurring revenue weighting supports earnings quality and cash flow predictability.
The 2 completed homes currently available for sale provide immediate revenue activation potential outside the 26-site expansion programme. These homes can be sold to incoming residents or converted to rental inventory depending on market demand dynamics, providing execution flexibility.
The path from 127 to 155 sites represents embedded net asset value growth with relatively modest additional capital deployment. The freehold 4.3 hectare landholding provides the physical platform for expansion without requiring additional land acquisition, whilst existing amenity infrastructure supports the higher site count without proportional amenity investment.
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What’s Next for Eureka Group?
Eureka expects to settle the Nagambie acquisition in late January 2026, subject to customary conditions. The near-term settlement timeline provides visibility on the asset’s contribution to FY26 earnings, with immediate cash flow generation from the existing 127-site operations.
The planning permit renewal process for the 26 vacant sites represents the immediate operational priority post-settlement. Eureka has commenced engagement with Council authorities and anticipates lodgement of formal renewal applications in accordance with regulatory timelines. Subject to Council approval, the company expects to commence landing new homes from mid-2026 onwards.
The $90 million acquisition pipeline in non-binding due diligence signals sustained growth momentum beyond Nagambie. This pipeline scale represents approximately 8.2x the Nagambie purchase price and suggests significant near-term opportunities if transactions progress to binding documentation. The company has demonstrated consistent execution capability through 9 all-age rental village acquisitions over the past 12 months, providing confidence in the pipeline conversion potential.
The three immediate milestones for Nagambie are:
- Settlement completion in late January 2026, transferring operational control and commencing cash flow generation
- Planning permit renewal lodgement with Council authorities to activate the 26 serviced vacant sites
- First new home installations targeting mid-2026 commencement, subject to permit approval and construction scheduling
The Victorian expansion strategy positions Eureka to capitalize on structural housing affordability challenges in regional markets. The clustering of assets across Nagambie, Benalla, Shepparton, and Albury creates operational leverage whilst capturing distinct demographic segments through the all-age rental and seniors rental accommodation models. The 155-site build-out at Nagambie provides a replicable blueprint for future acquisitions in supply-constrained regional centres with strong rental market fundamentals.
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