ASX-listed giant buys tourist park for growing sector
The country’s largest provider of affordable seniors housing is continuing to push into the all-age rental community sector, with a fourth site.
Following an off-market negotiation, ASX-listed Eureka Group Holdings has picked up the Barrier Reef Tourist Park, in Cairns’ south Edmonton, for $3.5 million – a high 9.7 per cent ingoing yield.
With 90 sites and 29 cabins – some a single room able to sleep four – which have conversion opportunity, a pool, camp kitchen, community laundry and three bedroom manager’s residence, the site spreads 2.05 hectares.
About 24 more dwellings could be added.
Eureka intends to target key workers, trades people and retirees, as well as provide some short-stay accommodation.
Funding will come from a recent $70.4m capital raising – Eureka’s fifth.
The group is intending to add to its book of asset for all-ages.
Its national portfolio – with seniors living properties – contains 2800 units.
69 Bruce Highway, Edmonton
Settlement of the Barrier Reef Tourist Park site, 69 Bruce Highway, is scheduled this month.
Elsewhere in Cairns, Eureka controls two senior living rental villages – at Earlville and Smithfield – both which it says have been fully occupied three years.
“Cairns has all the attributes that Eureka looks for when investing in residential communities,” chief executive officer, Simon Owen, said.
“Strong population growth, a low vacancy rate, and solid rental growth makes Barrier Reef Tourist Park an attractive proposition.” he added.
“With more than 170,000 residents, Cairns is one of Queensland’s most populated regions,” according to the executive.
“The region’s population is projected to grow to more than 220,000 by 2041, increasing the demand for quality and affordable long-term rental accommodation”.
Edmonton is about 14 kilometres south of Cairns.
The five-year unlevered internal rate of return for the Bruce Hwy asset, Mr Owen said, assuming the development of 24 long-term rental cabins, is 19pc.
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