Eureka Group to Acquire NSW Land Lease Assets from Ingenia
Australian senior housing provider Eureka Group has agreed to buy six retirement properties in New South Wales from Ingenia Communities Group for A$123.8
Eureka Group has agreed to acquire a set of six retirement properties in New South Wales from Ingenia Communities Group for A$123.8 million ($88.7 million). The acquisition will increase the number of housing plots in Eureka’s portfolio by 21 percent.
The deal will be partially funded through a 1-for-3.29 entitlement offer for existing shareholders at A$0.615 per share, raising A$80.2 million. Approximately A$53.6 million will come from a new A$80.0 million debt facility provided by Westpac and National Australia Bank.
Eureka’s managing director and chief executive Simon Owen said the acquisition is transformational, adding 953 established sites across Greater Sydney and other key NSW locations. He stated it materially increases scale and reinforces Eureka’s status as the only ASX listed pure-play residential rental specialist.
The assets provide an entry yield of 8.1 percent and a forecast five year internal rate of return of 15 percent, according to Eureka. The transaction will boost Eureka’s housing plots under management to 5,492 and assets under management to A$666 million.
Eureka’s New South Wales exposure will increase from 8 percent to 24 percent of its total plots as a result of the deal. The company expects the transaction to increase its fiscal 2027 underlying earnings per share to at least 4.2 Australian cents, a 22 percent increase compared with fiscal 2026.
Eureka requested a halt in trading of its shares on the ASX before the announcement. Shares will resume trading on 7 September.
The entitlement offer involves issuing 130.4 million new fully paid ordinary shares, equivalent to 30.4 percent of existing shares on issue. MA Moelis Australia Advisory, Morgans Corporate and Unified Capital Partners are fully underwriting the offer.
Jarden Group acted as financial adviser on the acquisition and Thomsons acted as legal adviser. Hamilton Locke acted as legal adviser on Eureka’s equity raising.
Ingenia said the sale will release A$124 million of capital, which will be used to repay debt. The impact has already been incorporated into its fiscal 2027 guidance.
Ingenia chief executive John Carfi stated the divestment reflects a disciplined approach to capital recycling, with proceeds from lower growth and mature assets being redeployed into higher returning opportunities across the group.
This includes investment in the enhancement and expansion of existing communities, the development of new high-quality land lease communities, and other growth initiatives expected to deliver stronger long-term earnings and value creation for security holders.
The transaction comes a week after Ingenia announced it will spend A$992.3 million to acquire Perth-based developer Peet, a deal that will give the company an additional 7,000 development lots for potential conversion to land lease communities.
