ASX-listed Eureka has settled its purchase of a motel in northern Queensland with the intent to turn it into a rental retirement village.
The Port Denison Motor Inn in Bowen was originally a 46-unit retirement village before being converted to short-stay accommodation.
Eureka last month finalised the deal to purchase the site and convert it back to retirement living after overcoming concerns on the part of Whitsunday Regional Council, and the deal has now successfully closed for a price just over $5 million.
“Consideration for the acquisition was $5.05 million (excluding transaction costs) which has been funded by debt and cash reserves.
“This transaction is consistent with Eureka’s strategy to acquire owned and managed village assets in the seniors’ independent rental living sector,” the operator said in an ASX release.
Whitsunday Regional Council had in November 2021 deferred Eureka’s request to waive $500,000 in fees, saying profits from the prospective village would “go out of town”.
