Eureka Group has entered into binding contracts to acquire Coral Tree Lodge Tourist Park for $6.7 million. The mixed-use tourist park is located on the New South Wales South Coast. Eureka Group is an Australian company focused on owning and managing affordable accommodation communities. The company aims to deliver stable returns to investors through strategic property investments.
The acquisition was made on an initial yield of 8.6 per cent, excluding transaction costs. Eureka Group has identified immediate scope to convert seven short-term sites into all-age, long-term rental dwellings under existing approvals. This conversion is expected to enhance the park’s revenue and occupancy rates.
According to Eureka, the five-year unlevered Internal Rate of Return (IRR) for the site is forecast between 16.1 per cent and 18.6 per cent. The IRR depends on the level of rental conversion achieved at the community. Coral Tree Lodge Tourist Park offers amenities including a manager’s residence, BBQ area, camp kitchen, swimming pool, games room, boat ramp, and guest laundry facilities for residents and guests.
