MELBOURNE – Australian property firm Eureka Group Holdings Ltd said on Tuesday it has acquired the Benalla Tourist Park in Victoria, its first all-age rental community in the state, for A$11.7 million ($7.7 million).
The mixed-use park, located about 200 kilometres northeast of Melbourne, comprises 145 revenue-generating sites, including 61 land-lease homes, 9 park-owned rentals, 29 tourist cabins, and 46 combined sites and motel rooms, Eureka said in a statement.
The acquisition comes with an initial yield of 8.0% and a target five-year internal rate of return of 17.0%, the company added.
The Benalla site has development approval to immediately add 21 new rental units, with potential for further development subject to council approval. Once fully developed, the village is expected to have 176 predominantly long-term rental and land-lease homes.
Eureka CEO Simon Owen said the purchase aligns with the company’s strategy to provide affordable long-term rental accommodation, citing Benalla’s tight rental market where vacancy rates are currently at 1.3% and rents have grown at an average of 8.5% per annum since 2016.
The park benefits from a diversified revenue stream, including permanent residents, long-term rentals, workers from local infrastructure projects, and tourist income.
The deal is Eureka’s ninth acquisition in the past year. The company said it has a further A$100 million in non-binding acquisitions currently under due diligence. Settlement is expected in late November 2025.
($1 = 1.5193 Australian dollars)