Within 24 hours of downgrading its profit forecast, the rental village operator announced it had entered into conditional contracts to buy the management and letting rights, together with the purchase of 55 of the 72 units, at Oxford Crest Eagleby (pictured) in Logan, South East Queensland.
The rental community, known as River Hills, was the first village developed and opened under the Oxford Crest banner in August 2002. A second stage was added in 2003.
Eureka has agreed to pay Oxford Crest $7.3 million for the manager’s home and the 55 units (excluding transactions costs).
“The transaction will be funded by debt and cash reserves and settlement is scheduled for early September 2022,” Eureka told the ASX.
“The acquisition is conditional on finance approval and certain body corporate approvals, including the change in Caretaker and Manager to Eureka.
“Eureka will continue to actively identify strategic opportunities to grow its managed portfolio in the seniors’ independent living sector alongside its ownership model.”
Eureka owns 33 villages, five of which are owned in a joint venture and an additional eight villages under management, representing 2,250 units.
