The rental village operator has acquired a total of 321 occupied units after buying the Ingenia Gardens’ rental villages in Perth, Mandurah, Bunbury, and Albany.
“We are very pleased to have secured this excellent portfolio that establishes Eureka’s position as a national leader in the affordable build to rent sector,” Murray Boyte, Eureka Executive Chairman (pictured), said.
The SOURCE reported in September that Eureka was in “preliminary talks” with Ingenia Communities and Murray said any transaction would depend “on statutory due diligence and establishment of a trust (with arms-length investors and Eureka holding a minor interest) to acquire the freehold.”
The villages will be acquired by a new Eureka-managed wholesale property fund called Eureka Villages WA Fund (the Fund).
The Fund will acquire the portfolio and fund associated transaction costs using equity and a stand-alone debt facility of $21 million. The Fund is raising $28.5 million from professional and wholesale investors, including a $5 million cornerstone investment from Eureka.
Post-completion, Eureka’s portfolio will comprise 52 owned or managed villages, totalling 2,872 units across Australia.
