Eureka Buys $123.8m NSW Portfolio, Raises $80.2m

Eureka Group Holdings Limited (ASX:EGH) announced it has entered into contracts with Ingenia Communities Group to acquire six lifestyle and mixed-use communities in New South Wales, comprising 953 sites across Greater Sydney, the Central Coast, the Hunter Valley and Shoalhaven, for $123.8 million excluding transaction costs. The portfolio is made up of two land lease communities and four mixed-use communities, with 680 permanent sites, 114 tourist cabins and 159 tourist sites, and the release states it was acquired at an ingoing yield of 8.1 per cent with a forecast five year unlevered internal rate of return of 15 per cent. Eureka said the acquisition expands its portfolio to 70 villages, increases homes and sites under management by 21 per cent to 5,492 and assets under management by 23 per cent to $666 million, and lifts its New South Wales exposure from 8 per cent to 24 per cent of total homes and sites. All assets within the portfolio are expected to be fully settled by the end of CY26. Managing Director and Chief Executive Officer Simon Owen said the acquisition adds 953 established sites across Greater Sydney and other key New South Wales locations and reinforces Eureka's status as the only ASX listed pure-play residential rental specialist.

The acquisition will be partially funded by a fully underwritten $80.2 million equity raising, structured as a 1 for 3.29 accelerated non-renounceable entitlement offer at a fixed price of $0.615 per new share, a 0.4 per cent discount to the five-day volume weighted average price of $0.617 on 1 September 2026 and a 4.4 per cent discount to the adjusted 10-day VWAP of $0.643. Approximately 130.4 million new shares will be issued, equivalent to about 30.4 per cent of existing shares on issue; new shares will be issued after the ex date for the 0.73 cents per share dividend for the six months to 30 June 2026 and so will not carry that dividend. The offer is fully underwritten by MA Moelis Australia Advisory, Morgans Corporate and Unified Capital Partners. Filetron Pty Ltd, which the release states holds a 34.8 per cent interest, has committed to taking up its full entitlement. Eureka has also secured $80.0 million in new committed debt facilities from Westpac and National Australia Bank, of which $53.6 million will fund the remainder of the acquisition, leaving $26.4 million of new committed facilities to support future acquisitions and developments. Pro forma for the acquisition and equity raising, Eureka upgraded FY27 underlying earnings per share guidance to at least 4.2 cents, representing 22 per cent growth on FY26 and 8 per cent accretion on previous guidance of at least 3.9 cents; the release footnotes that its reference to double digit accretion on a full-year basis assumes the acquisition and equity raising settled on 1 July 2026.