Eureka buys Townsville caravan park
Eureka Group has bought its second co-living investment in a month – this time in Queensland.
The Townsville Lakes Holiday Park at 196 Woolcock Street, Currajong, is setting the ASX-listed group back $6.75 million – a 9.1 per cent initial yield including transaction costs.
It contains 110 sites – 26 short stay tourist cabins, 82 powered ensuite sites and two park-owned rentals.
There is also a swimming pool, camp kitchen and barbecue areas.
Eureka recently closed its first All Age Village Fund.
Townsville is North Queensland’s largest city with more than 200,000 residents and a diverse employment base including agriculture, construction, defence, mining and education.
Conversion planned
Over the next three to five years, Eureka plans to convert the short-term accommodation to long-term rental housing and/or land-lease homes.
An 18.2pc-plus unlevered internal rate of return is forecast from the strategy.
The group already manages two Townsville seniors’ rental communities – at Condon and Wulguru – both fully occupied with waiting lists.
In a statement, the company added that the region’s median house price rose 30pc in the past 12m months, to $650,000 (continues below).
The region’s vacancy rate is 0.6pc, it said.
$120m pipeline
The Townsville deal comes as Eureka works through c$120m of acquisitions either under due diligence or close.
Last week realestatesource.com.au reported the group paid $18.4m for the Mandurah Coastal Holiday Park, between Perth and Margaret River.
In April it outlaid $14.1m for two Victorian villages – at Grantville and Paynesville.
The Benalla Tourist Park, which it picked up for $11.8m last year – was its first all-age rental park in that state.
The Townsville acquisition follows Eureka’s broader strategy of buying tourist and caravan parks to convert short-stay accommodation into long-term rental housing.
JLL’s Gareth Closter and Tom Gleeson were the agents.
Subscribe to our newsletter at the bottom of this page.
