TROUBLED COURAN COVE RESORT MAY BECOME RETIREE HAVEN

Written on the 30 March 2016 by Nick Nichols

TROUBLED COURAN COVE RESORT MAY BECOME RETIREE HAVEN

THE troubled Couran Cove Resort may be transformed into a retirement facility for seniors if the new owner of the property has its way.

Eureka Group Holdings (ASX:EGH) has revealed it is preparing to swoop on a portfolio of apartments within the tourist hideaway located on South Stradbroke Island with plans to take on a number of new apartments to be developed on the site.

The Gold Coast company says it has been approached by property owner Island Resorts Pty Ltd to 're-engineer certain assets' of the resort.

The aim is to create a 'viable independent seniors rental village and to provide infrastructure management services'.

"The assets involved meet Eureka's usual standards for cost of acquisition and hurdle rate, and in our strong view are perfect for seniors rentals," say Eureka chairman Robin Levison (pictured) in a statement to the ASX.

"If the acquisition is completed, Eureka in the first instance will acquire between 45 and 70 apartments and manage up to a further 40 on behalf of other owners.

"Over time, up to a further 170 apartments are intended to be built by the developer and managed by Eureka."

Levison is currently overseas and not immediately available for further comment.

Eureka says 300 property owners at the resort have been informed of the proposal, and that it has made the announcement in the interests of full disclosure.

Eureka Group is aiming to become the largest rental-only retirement village operator in Australia and has secured a number of acquisitions in the sector over the past year.

The move to convert the laid-back resort into a retirement haven is a major departure from the original plans laid out for the property when it was acquired from receivers in 2012 by Brisbane investor Craig Dowling.

Dowling spent an undisclosed sum upgrading the property, although it was a troubled tenure that included disputes with property owners.

Also gone is the Ramada branding for the resort after Wyndham revealed the facility did not meet standards.

Island Resorts, controlled by investor Glenn Molloy, is understood to have taken control of management of the facility in December.

Couran Cove was developed in the early 1990s by US philanthropist Chuck Feeney. It had run at a loss since inception, with Feeney said to have pumped more than $300 million into the business to support it.

 


Author: Nick Nichols

Latest News

BABY STEPS FOR BELLAMY'S IN TURNAROUND

GREEN shoots are appearing in the Bellamy's Organic (ASX: BAL) business in the early days of its turnaround.

T...

LOSSES MOUNT AT SLATER AND GORDON

SLATER and Gordon's losses continue to mount following its disastrous entry in to the UK market. The compa...

NVC PLAYS A DIFFERENT GAME, AND WINS

AS its profits rise, National Veterinary Care's (ASX: NVL) focus on training over retail is proving to be a wi...

SUPERLOOP $2M LOSS DOES LITTLE TO KILL SLATTERY'S CONFIDENCE

BEVAN Slattery (pictured) is optimistic that Superloop's (ASX: SLC) financial position is promising, despite t...

Related News

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter