Eureka Group Holdings Limited (ASX: EGH) has confirmed the acquisition of the Kin Kora residential home village and caravan park in Gladstone, Queensland. The acquisition will be funded by proceeds from Eureka’s recent $70.4m capital raise, with settlement expected on 13 March 2025.
Eureka plans to convert 28 caravan sites into one- and two-bedroom Build to Rent villas at an estimated cost of $5m, aiming for a stabilised yield of over 12%. Long-term plans include adding 20+ rental villas, subject to Gladstone Regional Council approval.
The $4.5m purchase of Kin Kora also includes 19 Manufactured Housing Estate (MHE) homes, 13 short-stay cabins, and 77 powered and unpowered caravan and camping sites. Additional facilities include a manager’s residence, central amenities, and an in-ground pool.
“The Kin Kora village acquisition in Gladstone breaks new ground for Eureka as we expand 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.
“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.”
Simon Owen, Chief Executive Officer, Eureka
This move represents Eureka’s entry into the all-age rental market. The company already operates a Seniors Rental Living Village in Gladstone and owns a 2.6-hectare parcel of land nearby, earmarked for future senior housing development.
As Queensland’s 11th largest town, Gladstone has a population of 34,703, with the wider region home to 65,500 residents.
The area is a hub for mining, port activities and renewable energy projects. Its Port of Gladstone is one of the largest coal exporting terminals in the world.
