Eureka Group Holdings has acquired Townsville Lakes Holiday Park in Queensland for $6.75 million as the ASX-listed company continues to expand its strategy of converting short-stay accommodation properties into long-term rental housing.
The acquisition, announced in August 2026, gives Eureka control of the 2.65-hectare property at 196 Woolcock Street, Currajong. The holiday park comprises 110 sites, including 26 short-stay tourist cabins, 82 powered ensuite sites and two park-owned rental properties. Existing facilities include a swimming pool, camp kitchen and barbecue areas.
Eureka acquired the property at an initial yield of 9.1% including transaction costs. The company plans to progressively transition the site’s short-term accommodation into long-term rental housing and/or land-lease homes over the next three to five years. Eureka forecasts an unlevered internal rate of return of more than 18.2% from the planned strategy.
The acquisition follows Eureka’s August 12 closure of its first All Age Village Fund and comes as the company builds a pipeline of holiday and caravan park properties that can potentially be repositioned toward longer-term accommodation.
The strategy represents a shift in the use of established park infrastructure, with existing roads, utilities and other site services potentially reducing some of the development requirements associated with new housing projects.
For holiday park and caravan park operators, the transaction also illustrates the potential competition for sites from investors focused on residential accommodation rather than traditional tourism use. Converting short-stay sites can affect the future supply of tourist accommodation in markets where parks are increasingly being evaluated for alternative residential uses.
Eureka said the Townsville acquisition is supported by local housing and employment conditions. Townsville is North Queensland’s largest city, with more than 200,000 residents and an economy spanning agriculture, construction, defense, mining and education. According to information cited by Eureka, the region’s median house price increased 30% over the previous 12 months to $650,000, while the rental vacancy rate was 0.6%.
The company already operates two seniors’ rental communities in Townsville, located in Condon and Wulguru. Both are fully occupied and have waiting lists, according to Eureka.
The Townsville purchase is part of a broader acquisition program, according to RealEstateSource. On August 13, Eureka announced its $18.4 million acquisition of Mandurah Coastal Holiday Park in Western Australia. That property includes 71 permanent land-lease homes, four park-owned rental dwellings, 24 cabins and motel units, and 69 powered caravan and camping sites, with approval for an additional 66 land-lease or long-term rental homes.
Eureka also acquired two Victorian communities in April 2026, at Grantville and Paynesville, for a combined $14.1 million, while the Benalla Tourist Park, acquired for $11.8 million in 2025, was its first all-age rental park in Victoria.
The company said it has more than $120 million in non-binding acquisition opportunities under due diligence or advanced price discovery. The Mandurah transaction is expected to settle in late August, while settlement of the Townsville acquisition is expected before the end of August.
For park owners and investors, Eureka’s expanding pipeline highlights how regional housing shortages, property values and rental demand are influencing the investment case for established holiday parks. It also underscores the importance of considering a property’s existing tourism revenue alongside its potential alternative uses when assessing future acquisition and development opportunities.
JLL’s Gareth Closter and Tom Gleeson advised on the Townsville sale.