Chairman Robin Levison (pictured) says the figures are “below the expectation of the Eureka board and management team” even though its EBITDA jumped to $7.44M, up from $4.35M in the first half of FY 2016.
The group only managed to acquire two villages after spending “a material sum of time and money” on a number of potential acquisitions that were not completed.
Mr Levison says the company will now step away from its management and infrastructure contract for Couran Cove to focus on growing its village portfolio with plans to acquire a further four to six before June 30.
Eureka had received a three-year $3M option for 60 blocks of land to build rental accommodation as part of the contract.
Mr Levison told the Gold Coast Bulletin he is confident Eureka can achieve its medium-term goal of owning and/or managing 5,000 units across Australia.
It currently has 26 villages and a total of 2,069 units in QLD and northern NSW and another four villages under due diligence. “We’re almost halfway there. It is a three-to-five-year goal. I think it is very feasible,” he said.
Eureka also expects to rake in $14M from their plan to subdivide and strata-title units at its flagship Terranora property, 110km south of Brisbane on the NSW-QLD border.
While the plans are still before the Tweed Shire Council, around 50% of the units have already been contracted with a value of around $8M.
Image credit: Gold Coast Bulletin