This article is from the Australian Property Journal archive
EUREKA is set to acquire a new short stay accommodation village in the Whitsunday Region of North Queensland, in a bid to expand its independent rental retirement living portfolio.
Eureka Group Holdings Limited entered the conditional heads of agreement to acquire the Bowen-based 46-unit village for $5.1 million, excluding transaction costs.
The village was initially built to serve as a retirement village, as the Whitsunday Region has a healthy demographic profile for affordable rental accommodation for senior, sitting between both Townsville and Mackay. Though the village is currently operating as short stay accommodation.
The community facilities would allow the lifestyle and retirement communities operator an economic means of transition into an independent living seniors’ rental village.
While the adjacent vacant land could leave room for the group to explore expansion of the offering in the future.
The purchase is conditional on the possibility of this change, with the Whitsunday Regional Council needing to approve transitioning the property back to permanent accommodation, including associated costs, the completion of due diligence and Eureka’s obtaining financing and board approvals.
Eureka will fund the acquisition through debt and cash reserves, with the transaction scheduled for an April 2022 settlement.
This latest transaction follows the group’s $6.1 million purchase for the management and letting rights of six Oxford Crest operated senior’s rental villages in south east Queensland.
