Listed rental village operator Eureka has announced the purchase of an 80 unit rental village in Lismore (NSW) for $4M, which they forecast will generate annual revenue of $1.2 million and a net (EBITDA) return of $600,000p.a.
National Australia Bank is providing finance of $2.4 million.
Eureka has emerged out of the receiverships of the old Village Life and SunnyCove. They have approximately 24 rental villages, owning about six and managing balance the private investors. They wish to be the largest rental village operator in the country.
Eurekas share price has steadily climbed from 4 cents 20 months ago to 44 cents today. Brokers are advising a target price of 47 cents.
Eurekas Chairman, Robin Levison, gave a 15 minute presentation, explaining their business model, at our LEADERS SUMMIT in March.
He points out that they enjoy and 91% occupancy, average tenancy is five years, food and the village management are key. In fact they have a waiting list of managers keen to work with them they are treated like franchisees.
