AUSTRALIA | Eureka Group Holdings completed an AUD $80.2 million equity raising to help fund its AUD $123.8 million purchase of six New South Wales communities from Ingenia Communities Group. The Australian operator confirmed completion of the raising on 28 September, following the acquisition announcement earlier that month.
The purchase comprises two land lease communities and four mixed-use properties across Greater Sydney, the Central Coast, the Hunter Valley, and the Shoalhaven. Together, they contain 953 sites, of which 680 are permanent sites, with the remainder comprising tourist cabins and short-stay sites.
Eureka said the acquisition would increase its portfolio to 5,492 homes and sites across 70 communities. Its New South Wales share would rise from eight percent to 24 percent.
The company secured AUD $80 million in new bank facilities, with AUD $53.6 million allocated to the purchase and associated costs. The balance provides funding for further acquisitions and development.
In its September acquisition announcement, Eureka expected all six properties to settle by the end of 2026. It raised its forecast underlying earnings per share for the 2027 financial year to at least 4.2 Australian cents, from at least 3.9 cents.
The completed capital raising comprised AUD $70.7 million from the institutional component and AUD $9.5 million from the retail component. Retail shareholders applied for AUD $3.1 million of shares, representing approximately 33 percent take-up, with sub-underwriters allocated the untaken shares.
The offer price was 61.5 Australian cents per share. Eureka scheduled the retail shares for issue on 30 September, with trading expected to begin on 1 October.
The mix of permanent accommodation and tourist sites makes this more than a retirement housing purchase. Managing the properties will require attention to both continuing residents and shorter stays. The commercial question is how well the two uses fit together, including the demands each makes on property maintenance, staffing, and the use of shared facilities.
Read more here.
