EUREKA ADDS ADELAIDE SITE TO PORTFOLIO
Written on the 12 May 2016
EUREKA Group Holdings (ASX:EGH) continues to make good on its buy and build strategy, snapping up its ninth acquisition this financial year.
The retirement village operator has agreed to acquire Amber Lodge, a support care residence in Morphettville, Adelaide.
Amber Lodge, a 54-room village to be known as Eureka Amber Lodge, was purchased for $4.5 million and is currently sitting at 90 per cent occupancy.
The new addition is expected to generate annual EBITDA of $550,000 and there is additional vacant land to deliver a further 36 units. This adds to around 400 existing brownfield or in-fill development opportunities already under Eureka's belt.
"The acquisition of Amber Lodge is another step in Eureka's previously outlined buy and build strategy and adds to the existing economies of scale the company has in South Australia with a total of 584 beds now in the region," says Eureka chairman Robin Levison (pictured) in a statement to the ASX.
Business News Australia has contacted Levison for further comment.
Eureka, headquartered on the Gold Coast, now owns 19 villages, or 1100 units, with an additional 28 villages, or 1881 units, under management. It has a further 10 villages under current due diligence.
The Amber Lodge acquisition marks the ninth purchase of FY16. Other acquisitions this financial year include the 80-unit Terranora Village in NSW, purchased for $7 million, a 41-unit village in Rockhampton purchased for $4.565 million and a 45-unit village in Mt Gambier acquired for $2.25 million.