At a time when a number of traditional retirement village operators are moving into the land lease sector, Eureka Group Holdings is moving in the other direction.
The operator is set to add 123 independent living units to its portfolio, with the unconditional acquisition of the two Queensland villages – which will be operated under the Retirement Villages Act.
The first village in Cairns – which is close to its existing Smithfield village – is a traditional retirement village, while the Hervey Bay purchase is a mix of rental units and Deferred Management Fee (DMF) units.
Eureka will fund the $13 million acquisition from cash reserves and debt.
With regulatory approval now received for both purchases, the Cairns village (70 units) and the Hervey Bay village (53 units) are expected to settle next month and take Eureka to 2,270 units in total across the country.
Eureka currently owns 30 rental villages, and has eight under management.