Eureka Group Holdings' growth strategy unveiled

Eureka Group Holdings (ASX:EGH) has revealed a strategic acquisition and growth plan, significantly expanding its units under management. The company will acquire 441 units across seven villages and 38 single units across four managed villages, totaling an expected investment of $49.9 million. This move aims to enhance Eureka's position as a leading provider of seniors' rental accommodation in Australia.

Eureka's expansion and financial strategy explained

Eureka Group Holdings (ASX:EGH) is embarking on a strategic expansion by acquiring 441 units across seven villages and 38 single units, investing a total of $49.9 million. Additionally, the company has identified $7.5 million in opportunities for village expansion. To support these initiatives, Eureka plans a fully underwritten equity raising of $70.4 million, with a pricing of $0.61 per share. The company projects a growth in underlying EBITDA by at least 16% and EPS by at least 8% for FY2025, ultimately increasing the portfolio value by 22% to $333 million. These steps align with Eureka's goal to remain a leader in the seniors' rental accommodation market, supported by favorable market conditions and government-backed income streams.

Executive insights on Eureka's strategic direction

The acquisitions are expected to provide a step-change in Eureka's growth profile, enhancing its status as Australia's largest owner, operator, and developer of seniors' rental communities.