Eureka Group Holdings (ASX:EGH) has agreed to acquire Mandurah Coastal Holiday Park in Western Australia for AU$18.4 million in an off-market deal, according to a Thursday filing with the Australian bourse.

The 168-site park comprises 71 occupied land-lease homes, four park-owned rentals, 24 cabins and motel rooms, and 69 short-term sites, per the filing.

The 4.05-hectare property also has approval for 66 additional land-lease or long-term rental homes, offering further development potential, the filing said.

The acquisition reflects a 7.7% initial yield and a targeted five-year internal rate of return of nearly 19%, with an implied cost of around AU$110,000 per home or site, well below replacement cost.

Settlement is expected in late August, with the company pointing to strong population growth, low rental vacancy rates and rising house prices in Mandurah as key drivers of demand, the filing added.

The company's shares rose 1% in recent Thursday trade.