EUREKA Group Holding's (ASX:EGH) vision of transforming Couran Cove into a retirement community is fast becoming a reality after the company snapped up a number of units on the island.
The retirement village operator has completed the acquisition of 36 units located within the tourist hideaway located on South Stradbroke Island for $2.05 million.
It has further plans to acquire up to 90 additional units and manage up to a further 50 on behalf of the owners.
In addition, 170 units are intended to be built by the developer and managed by Eureka, which will make the Couran Cove site the company's largest single low cost rental facility once complete.
"The price and positioning of the Couran Cove assets made the opportunity too attractive to pass up, even though the location is generally thought of as more of a holiday destination," says Eureka chair Robin Levison.
"Since Eureka first announced its intention to set up a low cost rental retirement village at Couran Cove, the level of enquiry has been strong, vindicating the company's judgement that this location would be well received by retirees."
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 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.