BRISBANE: Eureka Group Holdings Ltd. announced Thursday it has entered into contracts to acquire a portfolio of six lifestyle and mixed-use communities in New South Wales for $123.8 million, a move the company described as transformational for its growth and scale.

The acquisition, which includes 953 sites across Greater Sydney, the Central Coast, Hunter Valley and Shoalhaven, will expand Eureka’s portfolio to 70 villages and increase homes under management by 21% to 5,492. The company’s assets under management will rise by 23% to $660 million.

To partially fund the purchase, Eureka launched a fully underwritten equity raising of $80.2 million. The capital raise consists of a 1-for-3.29 accelerated non-renounceable entitlement offer of new fully paid ordinary shares at an offer price of $0.615 per share, representing a 0.4% discount to the five-day volume-weighted average price of $0.617.

Eureka also secured $80 million in new committed debt facilities from Westpac and National Australia Bank, with $53.6 million allocated to fund the remainder of the acquisition. The remaining $26.4 million will support future acquisitions and developments.

The acquisition is expected to be immediately earnings accretive. Eureka upgraded its FY27 underlying earnings per share guidance to at least 4.2 cents, representing 22% growth on FY26 and an 8% increase from previous guidance of at least 3.9 cents.

“This acquisition is transformational for Eureka, adding 953 established sites across Greater Sydney and other key NSW locations, materially increasing scale and reinforcing Eureka’s status as the only ASX listed pure-play residential rental specialist,” Managing Director and CEO Simon Owen said in a statement.

The portfolio, dubbed the NSW Living Portfolio, comprises four mixed-use communities and two land lease communities. It is being acquired at an ingoing yield of 8.1%, with a forecast five-year unlevered internal rate of return of 15%.

The assets include The Grange in Morisset, Bevington Shores in Lake Macquarie, and communities in Nepean River, Sydney Hills, Hunter Valley and Ulladulla. The portfolio includes 680 permanent sites, 114 tourist cabins and 159 tourist sites.

The acquisition increases Eureka’s exposure to New South Wales from 8% to 24% of total homes and sites and establishes the company’s presence in Greater Sydney, which it described as the highest-rent market in Australia.

The entitlement offer includes both institutional and retail components. The institutional offer opened Thursday, while the retail offer will open Sept. 10 and close Sept. 23. Eligible retail shareholders may also apply for additional shares through an oversubscription facility.

Major shareholder Filetron Pty Ltd, which holds a 34.8% interest, has committed to taking up its full entitlement.

MA Moelis Australia Advisory Pty Ltd, Morgans Corporate Ltd. and Unified Capital Partners Pty Ltd are acting as bookrunners, underwriters and joint lead managers. Jarden Group Ltd. is acting as financial adviser on the acquisition, with Thompsons as legal adviser. Hamilton Locke is legal adviser for the equity raising.

All assets within the portfolio are expected to be fully settled by the end of calendar year 2026.

The New Shares issued under the entitlement offer will rank equally with existing shares but will not be entitled to the company’s previously announced dividend of 0.73 cents per share for the six months to June 30, 2026.

Eureka will hold an investor briefing at 11:30 a.m. AEST Thursday to discuss the details.

The offer is not available to U.S. persons or in jurisdictions where distribution would be unlawful, and the shares have not been registered under the U.S. Securities Act of 1933.

Eureka Group Holdings Ltd. (ASX: EGH) is an Australian residential rental specialist focused on seniors and all-age accommodation. The company owns and manages land lease communities and mixed-use villages across Australia.