Eureka Group acquires Tasmanian assets for $18 million
Written on the 14 March 2018 by Business News Australia
Eureka Group Holdings (ASX: EGH) has acquired five rental villages throughout Tasmania in a joint venture deal with a group of private investors.
The Gold Coast-based retirement village operator acquired the seniors' rental assets in Hobart, Launceston and Devonport from Ingenia for a total of $18 million.
The acquisition adds 254 new units to Eureka's portfolio which now includes 32 owned villages and 9 villages under management.
Eureka has debt funded the acquisitions, however it plans to offset costs by selling off its non-core assets over the next 12 months.
The transaction is due to settle in April and CEO Jeff Weigh says the group will continue to target new assets in growing its portfolio.
"[Eureka's] prime objective is to aggregate assets in the growing retirement sector and achieve increased returns from a profitable growth platform," says Weigh.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Business News Australia