EUREKA PORTFOLIO GETS $3.25M BOOST

Written on the 30 January 2015 by Jenna Rathbone

EUREKA PORTFOLIO GETS $3.25M BOOST

EUREKA Group Holdings' (ASX:EGH) strategy to move into the owner-operator market has seen the company boost its portfolio with a 57-unit retirement village in South Australia.

The Varsity Lakes-based company says the $3.25 million acquisition has increased units under ownership to 367 and lifting total units in the group, including those under management, to 1535.

"It is pleasing to see the market embracing the Eureka strategy put in place in January 2013 whereby the company is moving away from a specialist management rights operator to an owner-operator model," says Eureka chairman Robin Levison (pictured).

"This change has seen Eureka not only move to a fully secured funding position, with a significant reduction in the underlying borrowing rate, but also has seen strong institutional investor support for the strategy change."

Director Lachlan McIntosh says although Eureka is changing its focus towards owning assets for the "long-term certainty of earnings", it will still play a large role in the management of retirement villages.

"We will keep managing villages forever but we are diverting far more capital to the acquisition of real estate," says McIntosh.

The acquisition, Myall Retirement Village in Whyalla, is expected to generate annual revenue of around $900,000 and is already 95 per cent occupied.

The Village has 10-double rooms which Eureka says is a significant advantage over normal configurations and EBITDA is forecast to be higher than a standard 57-unit regional retirement home.

Eureka has already moved in, with the company's management staff in place at the newly acquired site.

Eureka reported a net profit of $661,000 in FY14, up from $75,000 a year earlier, despite a 2 per cent drop in revenue to $10.66 million.


Author: Jenna Rathbone
About: Jenna Rathbone is a Queensland-based journalist who writes on a range of issues including business and property affairs and social issues.
Connect via: Twitter

Latest News

CHARTER HALL SNAPS UP SALAMANDER BAY CENTRE FOR $174M

RETAIL investment trust Charter Hall (ASX: CQR) has purchased the regional Salamander Bay Centre in New South Wales f...

$12 MILLION OFFICE SALE UNDERPINS MILTON REVIVAL

ONE of Milton's well known office buildings has sold for $12.88 million, supporting the resurgence of the popular...

ONE OF AUSTRALIA'S 'DOPE HOPES' MOVES CLOSER TO IPO

QUEENSLAND Bauxite (ASX: QBL) is planning an independent ASX listing for its majority-owned cannabis producer, with Q...

AFTERPAY GOES TRANS-TASMAN WITH TRADE ME DEAL IN NEW ZEALAND

AFTERPAY Holdings Ltd (ASX: AFY) has entered into an agreement with New Zealand trading site Trade Me Group Ltd (A...

Related News

AFTERPAY GOES TRANS-TASMAN WITH TRADE ME DEAL IN NEW ZEALAND

AFTERPAY Holdings Ltd (ASX: AFY) has entered into an agreement with New Zealand trading site Trade Me Group Ltd (A...

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET

TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashio...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter