This article is from the Australian Property Journal archive
EUREKA acquiring a senior rental village property in Mount Barker in South Australia.
The boutique over-50s rental village in the Adelaide Hills region comprises 54, 1-bedroom units and a 3-bedroom manager’s unit, with 94% occupancy. With the village expected to generate an initial EBITDA yield of 9.2%.
“The Mount Barker village is a great addition to our national portfolio of 52 rental villages across the country,” said Simon Owen, CEO at Eureka.
“South Australia is a core market for Eureka, which has a strong presence in Adelaide, with two owned and two managed villages, which will be complemented by the acquisition of this property.”
The acquisition will mark the first purchase from the funding generated by the group’s recent successful $70.4 million capital raising and is part of a portfolio of villages and units worth $49.9 million.
“We continue to progress due diligence and advanced discussions on a further five villages in Queensland. We are also completing due diligence on the $4.5 million purchase of a caravan park in regional coastal Queensland,” added Owen.
Eureka anticipates the acquisition will settle on 30 November 2024.
The group has been under the spotlight over the last week, with the retirement village operator facing an investigation by the Australian Competition & Consumer Commission (ACCC) over claims of excessive rent increases, reflecting rental increases of nearly 30%
While yesterday, Aspen Group announced it was divesting a majority of its stake in Eureka Group following its unsuccessful takeover earlier this year.
