This article is from the Australian Property Journal archive
SENIORS living provider Eureka Group Holdings has acquired an all-age living village in Gladstone on a high yield of 9.2%.
Eureka paid $4.5 million for the Kin Kora , a mixed-use residential village and caravan park comprising 109 lots including 19 Manufactured Housing Estate (MHE) homes, 13 short stay cabins, and 77 powered and unpowered sites for camping and caravans.
The park also includes a three-bedroom Manager’s Residence, central amenities block, and in-ground swimming pool.
Eureka intends to utilise the current DA to replace 28 caravan sites with one- and two-bedroom rental villas at a cost of approximately $5 million and a stabilised yield on cost of >12%. Over time the group said there is opportunity to add another 20+ rental villas (STCA).
CEO Simon Owen said the acquisition breaks new ground for Eureka as it expands into the all-age rental market.
“The housing crisis continues to impact communities across Australia, including in regional areas. Kin Kora presents as an excellent opportunity for Eureka to meet the growing demand for affordable low-cost housing to service a range of markets including essential service workers, active retirees, and tradespeople,” he added.
With home ownership in Australia continuing to decline, coupled with a shortage of affordable rental homes, the all age rental sector represents a significant opportunity for Eureka. Based on data from the most recent National Census in 2021, approximately 30% of the Australian population rent their homes and of the rental population, 85% are under the age of 55.
“I expect this will be the first of many similar park acquisitions for Eureka. We currently have multiple parks under due diligence, and a long pipeline of opportunities that we have under review and expect to quickly grow this sector in parallel with the expansion of our existing seniors’ affordable rental portfolio.” Owen concluded.
