Affordable housing operator Eureka Group Holdings (ASX: EGH) has advanced a planned demographic shift in its business after securing an $8.5m deal to acquire the Tuggerah Shores residential home village on the NSW Central Coast.

The acquisition is the second all-age rental accommodation property for the company which has traditionally focused on providing affordable accommodation for low-income retirees.

The deal for Tuggerah Shores follows the $4.5 million acquisition of the Kin Kora residential home village and caravan park at Gladstone, the company’s first all-age rental play, which was announced last month.

Eureka Group CEO Simon Owen at the time revealed that this would be the first of many rental acquisitions by the group catering to a broader demographic amid a sustained shortage of affordable rental homes across the national property market.

Tuggerah Shores Home Village, located at Tuggerawong south of Newcastle, is a mixed-use residential park comprising three “manufactured housing estate” homes, 62 long-term cabin and caravan sites, and seven short-term campsites.

The park, which sits on a 5.2ha site, also has a three-bedroom manager’s residence, a central amenities block, a camp kitchen and an in-ground swimming pool.

The acquisition has been struck on an initial yield of 8.6 per cent, although the company plans to refurbish or replace caravans and cabins at the property over the next few years.

“The Central Coast of New South Wales boasts a population of 362,500 people making it the third most populated region in New South Wales, and the tenth in Australia,” says Owen.

“Tuggerah Shores presents an excellent opportunity for Eureka to step into this high-growth market.”

Eureka Group says the village provides accommodation in the coastal township for permanent and long-term residents, with the property benefiting from a consistent 100 per cent occupancy and a “deep waiting list”.

The latest acquisition follows moves by the Brisbane-based group to recycle capital through the sale of underperforming assets that could yield up to $30 million over the next 12 months.

In December last year, Eureka Group announced the $5 million sale of Eureka Mount Gambier, a 58-unit facility that was operating at 77.5 per cent occupancy.

The Tuggerah Shores acquisition is being funded via Eureka Group’s $70.4 million capital raising completed at the end of last year.

The capital injection is targeting seven acquisitions that Eureka Group has in its sights, including the latest, as it looks to boost its scale as Australia’s largest owner, operator and developer of seniors’ rental communities.

“Demand for affordable all -age rental accommodation in Australia remains high and will stay that way for the foreseeable future,” says Owen.

“Eureka has multiple other all-age rental villages under exclusive due diligence.”

Eureka Group Holdings has a portfolio of 53 villages nationally comprising 2,872 units under management. The company has reported average occupancy of 97 per cent across its portfolio.

Eureka Group posted a 25 per cent increase in underlying profit before tax to $5.4 million in the first half of FY25. The result was aided by an 11 per cent increase in revenue to $22.6 million, partially driven by new acquisitions.

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